Trigger lead ban bill passes Senate, heads to Trump’s desk for signature

The US Senate passed the Homebuyers Privacy Protection Act this week, advancing a bill that aims to safeguard consumers’ personal data during the mortgage application process. The bipartisan legislation, which now awaits president Donald Trump’s signature, was lauded by the National Association of Mortgage Brokers, or NAMB, as a major victory for homebuying transparency. 

The legislation, H.R. 2808, was approved with full Senate passage by unanimous consent on Saturday. Its passage follows a similar bill that had previously made it through the Senate in June and House approval of H.R. 2808 on June 23. Various industry groups, including the Mortgage Bankers Association, the Broker Action Coalition and the Community Home Lenders of America, all expressed support for the bill’s passage. The Broker Action Coalition’s chief advocacy officer, Brendan McKay, called the news “the best news ever,” according to Scotsman Guide. The bill would take effect six months after being signed into law. 

NAMB has long advocated for the bill, which addresses a practice known as “trigger leads.” These leads are created when a consumer applies for a mortgage, prompting a credit inquiry that allows credit bureaus to sell the applicant’s data to third parties. According to NAMB, this process can lead to an influx of unsolicited offers and confusion for homebuyers.