Homebuyers Privacy Protection Act Signed into Law: A Crucial Step in Reducing Unsolicited Mortgage Marketing

Washington D.C. has witnessed a significant development in consumer data protection with the signing of the Homebuyers Privacy Protection Act into law. The legislation, championed by U.S. Senator Jack Reed (D-RI), aims to curb the practice of trigger leads, where credit bureaus sell mortgage applicants' data without consent, resulting in a flood of unwanted calls, texts, and messages. This bipartisan bill, co-authored by Senator Bill Hagerty (R-TN), marks a major victory for consumer advocacy groups and financial trades.

Key Takeaways:

The Homebuyers Privacy Protection Act prohibits credit reporting bureaus from selling trigger leads unless a mortgage broker or lender certifies they already have a deep financial relationship with the consumer, such as an existing mortgage loan or deposit account.
The law also permits trigger leads if a consumer affirmatively opts-in to receiving them.
The legislation amends the Fair Credit Reporting Act (FCRA) to include specific restrictions on the use of trigger leads in the residential mortgage lending space.
Trigger leads are currently restricted in eight states, including Rhode Island, Connecticut, and Kansas, with Idaho and Arkansas recently passing trigger lead laws slated to take effect in July and August 2025, respectively.
Cosponsors in the U.S. Senate include Senators Chris Van Hollen (D-MD), Tom Tillis (R-NC), Catherine Cortez Masto (D-NV), and 33 others.
The bill has garnered support from a broad coalition of consumer advocacy groups and financial trades, including the Mortgage Bankers Association, the Independent Community Bankers of America, and the National Association of Mortgage Brokers.

Statistics:

According to the National Association of Mortgage Brokers, bank customers typically receive 100+ misleading texts, phone calls, and emails within the first 24 hours of applying for a mortgage.
Approximately eight states restrict the use of trigger leads in some fashion.
Idaho and Arkansas have recently passed trigger lead laws slated to take effect in July and August 2025, respectively.
The law will prohibit credit reporting bureaus from selling trigger leads unless a mortgage broker or lender certifies they already have a deep financial relationship with the consumer.

Sources:

U.S. Senator Jack Reed (D-RI)
National Association of Mortgage Brokers president, Jim Nabors
The House version of the bill (H.R.2808)