Banking and Finance Law Daily Wrap Up, PRIVACY—Senate passes Homebuyers Privacy Protection Act limiting ‘trigger leads’, (Aug 5, 2025)
Organizations Mentioned:American Bankers Association | Americans Financial Reform | Americans for Financial Reform | Broker Action Coalition | Community Home Lenders of America | Consumer Federation of America | Independent Community Bankers of America | Mortgage Bankers Association | National Association of Mortgage Brokers | National Consumer Law Center
By Nora Macaluso
President Trump is expected to sign the bill, which is designed to stop unwanted solicitations to consumers who apply for mortgage loans.
The Senate has passed the Homebuyers Privacy Protection Act, a bill that prevents credit reporting agencies from selling prospective homebuyers’ contact information, with limited exceptions.
The legislation will stop “a tidal wave of unsolicited spam credit offers” from “irresponsible” mortgage brokers, lenders, and other businesses, said sponsor Sen. Jack Reed (D-R.I.). “This is a big, bipartisan win for consumers that will halt a flood of unwanted solicitations,” Reed said.
The bill was co-authored by Sen. Bill Hagerty (R-Tenn.). It is designed to crack down on “trigger leads,” or the selling of consumers’ mortgage application information by credit bureaus.
“It is not unusual for bank customers to receive 100+ misleading texts, phone calls, and emails within the first 24 hours of applying for a mortgage,” said Jim Nabors, president of the National Association of Mortgage Brokers. “The passage of this bill will go a long way in relieving this burden to homebuyers.”
The bill amends the Fair Credit Reporting Act to include restrictions on how trigger leads are permitted to be used with residential mortgage applications. Agencies may furnish the information to a third party in certain situations, such as if there is a “firm offer of credit or insurance” or the consumer has an account with the institution. Consumers may also opt into receiving offers.
This bill will go into effect six months after President Donald Trump signs it.
Rhode Island, Connecticut, Kansas, Kentucky, Maine, Texas, Utah and Wisconsin already have restrictions on the use of trigger leads, and Idaho and Arkansas have recently passed legislation targeting them.
The Mortgage Bankers Association, the Independent Community Bankers of America, the American Bankers Association, the National Association of Mortgage Brokers, the Broker Action Coalition, Community Home Lenders of America, the National Consumer Law Center, the Consumer Federation of America, and Americans for Financial Reform are among groups supporting the bill, according to Reed.
The House has passed a similar version of the bill.
“We applaud the Senate for passing important consumer protection legislation that prohibits credit reporting firms from selling mortgage applicant information to lenders who then barrage those consumers with unwanted solicitations,” the ABA said. “Approving the House-passed Homebuyers Privacy Protection Act by unanimous consent ensures these abusive mortgage ‘trigger leads’ will be eliminated, while narrowly preserving them for legitimate, transparent and accountable uses. We look forward to President Trump signing this bipartisan solution into law to protect American consumers.”
Companies: American Bankers Association; Americans Financial Reform; Broker Action Coalition; Community Home Lenders of America; Consumer Federation of America; Independent Community Bankers of America; Mortgage Bankers Association; National Association of Mortgage Brokers; National Consumer Law Center
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