New rule bans misleading marketing and protects consumers from unwanted offers
Idaho has passed a new law designed to strengthen consumer privacy protections during the mortgage application process, joining the growing push to curb the controversial use of mortgage trigger leads.
On March 17, Governor Brad Little signed HB 149 into law, adding a new section titled “Consumer Privacy in Mortgage Applications” to the Idaho Residential Mortgage Practices Act. The new provisions, set to take effect July 1, specifically target how consumer information tied to mortgage credit inquiries can be used and who can use it.
The law defines a mortgage trigger lead as a lead generated when a credit inquiry is made to a consumer reporting agency in connection with a mortgage application. It places strict conditions on how these leads can be used, aiming to prevent deceptive or unauthorized solicitations.
Under the new rules, companies using trigger leads to market mortgage products must clearly disclose that they are not affiliated with the original lender or broker and must inform consumers that their information was purchased from a credit reporting agency without the knowledge or permission of the original lender or broker.
The law also requires full compliance with the Fair Credit Reporting Act’s (FCRA) pre-screening rules, including the requirement that any outreach must include a firm offer of credit. Additionally, it prohibits soliciting consumers who have opted out of pre-screened offers or who are listed on state or federal do-not-call registries.
Violations of the new provisions will be considered violations of the Idaho Consumer Protection Act.
The Idaho law comes as industry-wide efforts to eliminate trigger leads at the federal level continue.
A ban on the practice had been proposed as part of the National Defense Authorization Act (NDAA) for 2025, but was removed from the bill’s most recent version. Even so, the National Association of Mortgage Brokers (NAMB) says it’s not backing down.
“Along with the Mortgage Bankers Association [MBA] and every other association that’s interested in putting an end to this anti-consumer practice, NAMB is happy to work with anyone,” said NAMB president Jim Nabors, in an interview with Mortgage Professional America. “It doesn’t matter how big or small they are because, to me, this is not a mortgage broker or mortgage banker issue. This is a consumer issue, and it benefits everyone.”
NAMB played a key role in bringing the issue to Congress in 2023, with support from Representative Ritchie Torres (D-NY). Although the federal ban didn’t move forward in the NDAA, the association is already preparing to revive the bill.
Read more: Trigger leads: How can mortgage brokers counter the threat?
Nabors emphasized that removing the practice is a shared goal across the mortgage industry, and an urgent one for consumers.
“[Brokers] want to learn how to develop their own referral sources and develop business,” he said. “But for a few people it’s just a case of buying somebody else’s leads and seeing what they can siphon off.”
The Association of Independent Mortgage Experts (AIME) has also been leading the fight against trigger leads for several years.
“The practice is compounded so much over the last couple of years because the market has gotten so much tighter,” AIME told MPA. “So everybody is out there buying leads and trying to buy information to drum up conversations with potential clients, but those clients didn’t enter into consensual relationships with those lending institutions and loan officers. They [consumers] talk to a loan originator that they trusted, they submitted an application to get qualified for a loan and then the very next day they’re getting 100s, sometimes 1,000s, of phone calls and text messages that are not only annoying but often incredibly misleading.”
AIME has called for an outright ban of the practice.
Stay updated with the freshest mortgage news. Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.
