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Trigger Leads Legislation Gains Momentum in Both House and Senate

Trigger Leads Legislation Gains Momentum in Both House and Senate June 15, 2025

This past week marked a major shift in the effort to curtail trigger leads in the mortgage industry, as both chambers of Congress advanced legislation aimed at protecting consumer data and reducing unsolicited offers during the mortgage process.

On Tuesday, the House Financial Services Committee unanimously approved H.R. 2808, the Homebuyers Privacy Protection Act, with a 46-0 vote. The following day, the Senate passed its version of the bill, S. 1467, by voice vote. While the two versions differ slightly, they share a common objective: limiting the ability of credit reporting agencies to sell consumer data through trigger leads, except under clearly defined and consumer-authorized circumstances.

1.What Are Trigger Leads, and Why Are They Problematic?

Trigger leads are generated when a mortgage lender pulls a credit report for a consumer. Once that inquiry is made, the credit bureau can sell the information to other lenders subscribed to a service that alerts them someone is actively shopping for a mortgage. This often results in the consumer receiving multiple unsolicited calls, texts, or emails from lenders they’ve never interacted with. The consumer may feel overwhelmed or misled, and frequently expresses frustration to the original lender—who, in reality, had no role in the lead being shared. In more troubling cases, other companies may impersonate the original lender or misrepresent themselves, contributing to consumer confusion and undermining trust in the lending process.

2.What the Legislation Does

Both the House and Senate bills seek to amend the Fair Credit Reporting Act to prohibit consumer reporting agencies from selling trigger leads unless the requester is either authorized by the consumer, has an existing relationship with the consumer, or is a financial institution where the consumer already holds an account. These bills aim to strike a balance by preserving the consumer’s ability to receive legitimate credit offers while eliminating the unregulated sale of their data to unrelated third parties. Notably, the House version includes a provision directing the Government Accountability Office to study the value and impact of trigger leads sent by text message. This requirement is not included in the Senate version and may need to be resolved as the two bills move toward reconciliation.

3.Broad Industry and Consumer Support

The legislation has garnered widespread bipartisan support, both in Congress and across the mortgage and consumer advocacy landscape. During the House markup, Representative John Rose of Tennessee, the bill’s lead Republican sponsor, shared that 43 state Attorneys General and 16 trade associations had expressed formal support. Major industry groups such as the Mortgage Bankers Association, American Bankers Association, National Consumer Law Center, and Consumer Federation of America have all voiced their approval of the bill. Lawmakers from both parties echoed similar sentiments, noting that the bill continues to allow competition in the mortgage market while placing clear guardrails on how consumer information is handled.

4.State Restrictions Already in Effect

While Congress moves toward federal reform, several states have already implemented their own trigger lead restrictions. These laws generally aim to ensure that trigger leads are not used in ways that mislead consumers or violate fair marketing standards. States such as Connecticut, Kansas, Kentucky, Maine, Rhode Island, Texas, Utah, and Wisconsin already have restrictions in place. Idaho and Arkansas are set to join them in 2025, with laws taking effect in July and August, respectively. State laws often require entities using trigger leads to comply with the “firm offer of credit” rules under the FCRA, prohibit deceptive practices, and mandate disclosures clarifying that the soliciting lender or broker has no affiliation with the borrower’s current lender.

5.What Comes Next?

The next step is for the House and Senate to reconcile the differences between their two versions of the bill. Given the strong momentum, bipartisan cooperation, and widespread industry backing, there is cautious optimism that this legislation will be passed and signed into law before the end of the year. In the meantime, mortgage professionals should continue reviewing their compliance practices, especially in states that already restrict trigger lead activity. Lenders and brokers should also take the time to educate their teams and clients about how consumer information is handled, reinforcing transparency and trust. As always, we’ll continue to monitor developments closely and provide guidance on what these changes may mean for your operations.

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