The Homebuyers Privacy Protection Act, a bipartisan measure introduced in the Senate by Sens. Jack Reed and Bill Hagerty, and in the House by Reps. John Rose and Ritchie Torres, officially takes effect Thursday, March 5.
The bill, signed by President Trump on September 5, 2025, revises the Fair Credit Reporting Act (FCRA) to sharply limit the use of mortgage trigger leads, marking a significant change in how mortgage-related consumer data can be used.
Under provisions of the Homebuyers Privacy Protection Act, consumer reporting agencies are prohibited from selling trigger leads tied to mortgage credit inquiries except in specific, narrowly defined situations. A lender may only receive a trigger lead if it already maintains a qualifying relationship with the consumer — such as an existing mortgage or deposit account — or if the consumer has explicitly opted in to receiving such solicitations. In addition, any permissible trigger lead must correspond to a legitimate firm offer of credit or insurance rather than being used purely for marketing outreach.
“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 receive immediately after applying for a mortgage," said Mortgage Bankers Association (MBA) President and CEO Bob Broeksmit. "It will create a more efficient, responsible, and respectful home buying process.”
Former NAMB President Jim Nabors emphasized the impact of the trigger leads practice on borrowers: “It’s not unusual for borrowers to receive more than 100 misleading texts, phone calls and emails within the first 24 hours after applying for a mortgage.”
Curbing a Flood of Communication
A recent survey from LendingTree reveals that the vast majority of U.S. consumers who apply for financial products experience a significant volume of unsolicited communication afterward.
“The ban on the sale of trigger leads is an important step toward improving the consumer experience when shopping for a loan," said Patrick Brennan, head of government relations at LendingTree. "Consumers should be able to compare offers without facing a wave of unsolicited calls and offers triggered by their application activity. This change will help create a more secure, less confusing experience while preserving fair competition that benefits borrowers.”
According to a survey of 2,001 Americans, 74% of respondents say they received unwanted contact — such as phone calls, text messages, emails or even direct mail — after applying for a loan or an insurance policy. Of those who reported such communication, 66% received at least 10 separate contacts, and 10% received more than 50, indicating that this is a widespread and persistent issue for loan seekers.
The survey characterizes this type of contact as “trigger leads.”
"Consumers shopping for a mortgage should be empowered, not overwhelmed," said Scott Peyree, CEO of LendingTree. "For too long, trigger lead practices have created confusion and frustration for homebuyers. This legislation reinforces a simple principle: consumers deserve transparency, choice and control over who contacts them about one of the most significant financial decisions of their lives."
A Victory for Consumers
The disruptive nature of these communications was reflected in how respondents felt about them, as 83% of those who received unsolicited contacts described them as bothersome, while 54% said the communications created confusion as they were attempting to make financial decisions. Phone calls were the most commonly cited nuisance, with 72% of recipients identifying them as the most disruptive form of outreach.
The report also uncovered a gap in consumer understanding of where these contacts originate, as 84% of respondents incorrectly attributed blame for the contacts to marketplaces, lenders or the federal government, rather than to credit bureaus selling prescreened leads — underscoring confusion about industry practices.
"Healthy competition drives better outcomes for borrowers," Peyree added. "This law strengthens competition based on price, service and product value, not on the speed or volume of outbound calls. That's good for consumers and good for responsible lenders."
