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New Law Protects Homebuyers from Abusive "Trigger Leads"

Strategic Insights

— 2 min read

President Trump has signed the Homebuyers Privacy Protection Act into law, prohibiting credit bureaus from selling mortgage applicants' data without consent. The bipartisan bill, co-authored by Senators Jack Reed (D-RI) and Bill Hagerty (R-TN), targets abusive trigger leads that lead to a flood of unwanted calls, texts, and messages. According to Jim Nabors, president of the National Association of Mortgage Brokers, prospective homebuyers typically receive 100+ misleading texts, phone calls, and emails within the first 24 hours of applying for a mortgage. The new law will prevent consumers' personal information from being sold and trigger a reduction in spam calls, texts, and emails from irresponsible players in the mortgage industry.

Key Takeaways:

  • The Homebuyers Privacy Protection Act, signed into law by President Trump, prohibits credit bureaus from selling mortgage applicants' data without consent.
  • The law targets abusive trigger leads that lead to a flood of unwanted calls, texts, and messages, protecting homebuyers' personal information.
  • Prospective homebuyers typically receive 100+ misleading texts, phone calls, and emails within the first 24 hours of applying for a mortgage, according to Jim Nabors, president of the National Association of Mortgage Brokers.
  • The law will go into effect six months from today, prohibiting credit reporting bureaus from selling a trigger lead unless a mortgage broker or lender certifies they already have a deep financial relationship with the consumer.
  • Trigger leads would also be permitted if a consumer affirmatively opts in to receiving them.
  • Eight states currently restrict the use of trigger leads: Rhode Island, Connecticut, Kansas, Kentucky, Maine, Texas, Utah, and Wisconsin.
  • Idaho and Arkansas have recently passed trigger lead laws that will soon take effect.

Statistics:

  • Prospective homebuyers typically receive 100+ misleading texts, phone calls, and emails within the first 24 hours of applying for a mortgage.
  • The law will go into effect six months from today.
  • Eight states currently restrict the use of trigger leads: Rhode Island, Connecticut, Kansas, Kentucky, Maine, Texas, Utah, and Wisconsin.
  • Two states, Idaho and Arkansas, have recently passed trigger lead laws that will soon take effect, with new laws effective July 2025 and August 2025, respectively.

Sources:

  • Reed, Jack. "Statement on Trump signing the Homebuyers Privacy Protection Act". Senators Jack Reed and Bill Hagerty.
  • National Association of Mortgage Brokers. "Trigger Leads and Your Rights as a Mortgage Customer."
  • U.S. Senate. "S.2272 - A bill to amend the Fair Credit Reporting Act to include specific restrictions on the use of trigger leads in the residential mortgage lending space."

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