A law restricting the sale and use of mortgage “trigger leads” just took another big step toward reality.
The U.S. House of Representatives considered and unanimously passed the Homebuyers Privacy Protection Act (H.R. 2808) late in the day on Monday, June 23.
The bill aims to restrict the controversial use of mortgage "trigger leads.” The House's passage of H.R. 2808 follows the Senate's approval of a similar bill, S. 1467, on June 12.
Both bills include provisions that would restrict companies from making credit offers unless the consumer has given explicit consent — or the offer is from an entity with an existing relationship, such as their mortgage originator or credit union. As noted, the bills are now closer to becoming law, should the House and Senate reconcile differences in their legislation, pass a blended bill, and that final bill is signed into law by President Trump.
Both H.R. 2808 and S.B. 1467, titled the "Homebuyers Privacy Protection Act,” aim to limit the circumstances where credit reporting agencies can provide consumer credit reports to third parties in connection with residential mortgage transactions. They address the longstanding “trigger leads” problem where a consumer's credit inquiry for a mortgage leads to unwanted calls, emails, and other solicitations.
Both the Senate and House bills prohibit credit reporting agencies from providing consumer credit reports related to residential mortgage transactions unless certain conditions are met.
Bob Broeksmit, CMB, president and CEO of the Mortgage Bankers Association (MBA), praised the House’s passage of H.R. 2808.
“The passage of this consequential bill, on the heels of the Senate passing its similar bill on June 12, is another important step forward in our fight to provide relief for consumers who face a torrent of unwanted emails, texts, and phone calls the moment they apply for a mortgage.”
Broeksmit added MBA is “more optimistic than ever that the abusive use of mortgage credit trigger leads is close to an end.”
“MBA will continue to work with the sponsors and congressional leadership in both chambers to reconcile the minor differences between the two bills so that one bill can be passed and signed into law as soon as possible,” he said.
The Community Home Lenders of America (CHLA) released a statement that it is "thrilled that trigger leads legislation has passed the House and is that much closer to becoming law."
"For groups like CHLA that support streamlined, smarter regulation, proactive steps like this — advocating for cleaning up industry practices like abusive trigger leads — are important in building credibility in pursuing that objective," said Scott Olson, executive director of CHLA.
CHLA noted it first wrote the Consumer Financial Protection Bureau (CFPB) in 2022 asking for action against abusive trigger lead solicitations and has pushed for congressional enactment of legislation curbing them, while protecting smaller lenders, since then.
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