The U.S. Senate has passed the Homebuyers Privacy Protection Act (S. 1467), bringing the mortgage industry one step closer to curbing the controversial use of mortgage trigger leads. The Mortgage Bankers Association (MBA) applauded the June 12 vote, which follows earlier progress in the House Financial Services Committee.
Longtime Industry Priority
“The Senate passage of this important bill, following similar legislation advancing in the House Financial Services Committee earlier in the week, is an enormous step toward finally putting a stop to trigger lead abuses,” said MBA President and CEO Bob Broeksmit, CMB, in a statement released shortly after the vote.
The legislation, introduced by Sens. Jack Reed (D-R.I.) and Bill Hagerty (R-Tenn.), aims to prevent consumer data from being sold to competitors when a borrower applies for a mortgage. While some argue that trigger leads are a tool for consumer choice, the industry overwhelmingly sees them as a lead-poaching loophole that erodes trust and harms the borrower experience.
Unified Industry Push
The Senate's recent action highlights a unified front within the mortgage industry, as underscored by Brendan McKay, chief advocacy officer for the Broker Action Coalition (BAC).
"One down, one to go. We’re only halfway there, and now is not the time to let up," McKay urged. "The next step is getting this bill to the House floor — and the more support it has, the more likely that is to happen. Every mortgage professional should take 30 seconds to complete a call to action, whether it’s through BAC, MBA, or NAMB."
"It matters more than people realize," McKay added.
“This bipartisan bill will strengthen consumer protections by ensuring that only mortgage lenders who have received a consumer’s permission can obtain that consumer’s data and contact information,” Broeksmit said in a June 10 MBA press release following the House Committee’s approval of its version.
As covered in NMP’s recent article, “Mortgage Trigger Leads — And The Latest Efforts To Rein Them In,” the issue has brought together retail and wholesale lenders, brokers, and major trade associations. The support from both the MBA and the National Association of Mortgage Brokers demonstrates the broad, strong coalition of support the legislation has received.
Not a Done Deal Yet
Despite the momentum, the bill’s future remains uncertain. As NMP reported late last year in “Trigger Leads Bill Faces Almost Certain Death,” many insiders believe time is running out. Legislative calendars, election year distractions, and competing priorities could sideline the bill before final passage.
Still, with both chambers of Congress taking action, ”Last Gasp For Trigger Leads Bill After Senate Approval” makes clear this may be the closest the industry has come to enacting federal restrictions on trigger leads.
Next Step: House Action
“MBA looks forward to working with the sponsors and House and Senate leadership to reconcile the slight differences in the two bills so that one bill can be passed in both chambers and signed into law as quickly as possible,” the group’s Broeksmit emphasized.
With a reconciled bill in sight, the focus now turns to the House. The path forward is narrow, but advocates are hopeful that sustained pressure and bipartisan support can push this bill across the finish line before time runs out.
If the House and Senate pass a reconciled bill, it would then go to President Donald Trump's desk for his approval and signature. The President has not made a public statement specifically addressing the Homebuyers Privacy Protection Act.
