Proposed legislation would require consumers to opt in before credit data is sold during the mortgage process
A federal bill aimed at restricting the use of mortgage trigger leads was reintroduced to the 119th Congress Thursday morning, just months after it failed to pass the House of Representatives in late December 2024 despite previously securing Senate approval.
The Homebuyers Privacy Protection Act (S. 3502) targets the controversial practice of selling trigger leads, consumer information generated when a credit report is pulled for a mortgage application. Though legal, trigger leads are often shared without the consumer’s knowledge, prompting unsolicited offers through phone calls, texts, and emails.
The newly reintroduced bill seeks to prohibit credit reporting agencies from providing such leads unless the consumer explicitly opts in.
The timing of the bill’s return coincided with the final day of the Brokers Action Coalition’s (BAC) three-day Advocacy In Action conference in Washington, DC, where a group of mortgage brokers visited Capitol Hill to advocate for the legislation.
BAC chief advocacy officer Brendan McKay shared on LinkedIn that Representative John Rose (R-Tenn.), a co-sponsor of the bill, appeared at the morning event with the bill in hand, signing it in front of attendees before formally reintroducing it to Congress.
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Trade groups across the industry, including BAC and the Mortgage Bankers Association (MBA), have voiced strong support for the legislation. MBA president and CEO Bob Broeksmit said the association has worked closely with stakeholders and a bipartisan coalition in both chambers of Congress to address the issue.
“MBA has worked closely with industry stakeholders and a large, bipartisan group of lawmakers in the House and Senate to push for action that ends the abusive use of mortgage credit leads,” Broeksmit said in a statement. “Consumers remain vulnerable to trigger leads abuses, and we believe strongly that this common-sense legislation will curb the practice while preserving its value in appropriately limited circumstances.”
Broeksmit also acknowledged the leadership of Senators Bill Hagerty (R-TN) and Jack Reed (D-RI), along with Representatives John Rose and Ritchie Torres (D-NY), for championing the effort.
“We will continue to advocate for House and Senate leaders to pass these measures into law as soon as possible,” he added.
The National Association of Mortgage Brokers (NAMB) echoed that support.
“The National Association of Mortgage Brokers is very driven and honored to work with members of Congress on this critical legislation to end trigger leads,” said NAMB president Jim Nabors. “NAMB and our members have been working with both the Senate and the House of Representatives on this issue for the past three congresses, and today we hope these efforts will help many people across the nation put an immediate end to ugly trigger lead practices that places undue hardships on consumers, mortgage professionals and the entire marketplace.”
At the MBA’s National Advocacy Conference earlier this week, Representative Ritchie Torres addressed the bill’s broader consumer implications.
“It’s about standing on the side of consumers,” Torres told the audience. “First, it’s about protecting data privacy. No one should have the ability to sell your data without [your] consent and knowledge. And then second, it’s about consumer protection.”
Representative Lisa McClain (R-Mich.) also signaled support during the conference. Asked whether she backed the bill, McClain responded with a definitive “Absolutely,” which was met with applause.
While federal lawmakers renew their efforts, Idaho has begun implementing their own consumer protections. Last month, Idaho Governor Brad Little signed House Bill 149 into law, introducing new privacy requirements for mortgage credit inquiries under the Idaho Residential Mortgage Practices Act.
Set to take effect July 1, the legislation requires companies using trigger leads to disclose their lack of affiliation with the original lender or broker and inform consumers that their information was purchased from a credit reporting agency without prior consent.
Read more: Idaho passes law to restrict trigger leads in mortgage applications
The new Idaho law mandates full compliance with the Fair Credit Reporting Act’s pre-screening requirements, including making a firm offer of credit. It also prohibits outreach to consumers who have opted out of pre-screened offers or who appear on do-not-call registries. Any violations will be treated as violations of the Idaho Consumer Protection Act.
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