Pres. Trump signs mortgage trigger leads ban into law

Pres. Trump has signed into law H.R. 2808, the Homebuyer Privacy Protection Act, one month after the bill cleared the U.S. Senate by unanimous consent.

The new law, which takes effect 180 days after enactment, has been welcomed by the mortgage industry for putting an end to the sale of trigger leads — consumer data sold by credit bureaus after a credit report is pulled.

There’s an exemption for existing relationships like the original lender and for depositories where the consumer has an account.

The bill was reintroduced in Congress in April; the previous year, it was included as part of the defense appropriation bill but was ultimately stripped out of the final version.

The Mortgage Bankers Association will work with the organization’s members and federal agencies to ensure a seamless transition during the six months before the bill goes into effect, Bob Broeksmit, president and CEO, said in a statement.

“This new law is a major victory for mortgage borrowers that will protect them from the barrage of unwanted calls, texts, and emails they too often received immediately after applying for a mortgage,” Broeksmit said. “It will create a more efficient, responsible, and respectful home buying process when it goes into effect on March 5, 2026.”

Another long-term supporter of the legislation, the National Association of Mortgage Brokers, thanked the bill’s champions in Congress, Sens. Bill Hagerty, R-Tennessee. and Jack Reed, D-Rhode Island, along with Reps. John Rose, R-Tennessee, and Ritchie Torres, D-New York.

“With this critical legislation becoming law, NAMB believes consumers now have more control over the information they receive as part of the home buying process, and they can now eliminate trigger lead abuses while preserving their use in appropriately limited circumstances,” Jim Nabors, its president, said in a press release.

The Broker Action Coalition also celebrated the win. “Mortgage brokers made ending trigger leads their top priority, and this victory shows what’s possible when we push together,” said Brendan McKay, chief advocacy officer, in a statement. “The coalition built with the MBA helped bring the wider industry into alignment, and together we got it done. Now the BAC is ready for what’s next.”

Nabors noted that NAMB has been pushing for passage of a trigger leads ban since 2018. But the issue goes back even further, as seen in this 2006 online article from former National Mortgage News affiliate MortgageWire, where regulators in Maine were expressing concern about trigger leads and considering regulating them to prevent misleading customer solicitations.

The Consumer Data Industry Association had opposed the legislation, stating it supported a consumer’s right to know about and find alterative offers while shopping for financial products like mortgages. The issue about the use of trigger leads is not with its members.

“At the same time, mortgage lenders should not inundate consumers with unwanted telephone solicitations,” Dan Smith, president and CEO of the CDIA said in a statement. “Existing law provides the legal framework to protect consumers, and the Homebuyers Privacy Protection Act, while well-intended, will limit competition and fail to further protect consumers from potentially abusive behaviors.”