Overview:
On June 12, 2025, the U.S. Senate unanimously passed the Homebuyers Privacy Protection Act (S. 1467), aimed at curbing the controversial practice known as “trigger leads.” This bipartisan legislation follows the House Financial Services Committee’s unanimous approval of its companion bill, H.R. 2808, earlier this week.
Background:
“Trigger leads” occur when credit bureaus notify other lenders after a consumer pulls credit for a mortgage, allowing those lenders to contact the borrower which often resulted in intrusive and excessive calls or texts.
While originally designed to help borrowers compare options, the tactic has morphed into a nuisance, disrupting borrowers and eroding trust.
Key Provisions:
- Amends the Fair Credit Reporting Act to prohibit credit bureaus from selling trigger leads unless:
- The lender already has an existing relationship with the consumer.
- The consumer has opted in to receiving leads.
- The lender is the borrower’s current mortgage servicer or originator; or
- The purchaser is a depository institution with which the borrower holds accounts.
- Enhances regulatory oversight by preserving market flexibility while setting consumer protection guardrails.
Support & Opposition:
- Supporters:
- Mortgage Bankers Association (MBA): CEO Bob Broeksmit praised the Senate vote as “an enormous step toward putting a stop to trigger lead abuses,” highlighting the legislation as an advocacy priority.[1]
- Broker Action Coalition (BAC): Brendan McKay urged swift action to move the bill to the House floor.[2]
- State Attorneys General: North Carolina AG and 42 colleagues urged Congress to finalize the law, citing consumer burden.[3]
- Broad backing from trade and consumer groups, including the ABA, IBAT, NCLC, CFA, and Americans for Financial Reform.[4]
- Opposition/Opposing Views:
- The Consumer Data Industry Association cautions that restrictions may reduce competition and argues existing TCPA enforcement is sufficient.[5]
Implications:
- Once the House-Senate language is reconciled, the legislation is expected to advance to the House floor. If signed, this bill will significantly alter lead generation and marketing strategies in mortgage origination.
- Covered entities—including credit bureaus, secondary marketing units, and mortgage originators—should prep for compliance changes, particularly regarding permissible lead sources and mandatory opt-in disclosures.
Next Steps:
- A conference will reconcile S. 1467 and H.R. 2808.
- Regulatory Affairs will continue to monitor the Congressional calendar and will issue updates once a final bill is passed and sent to the President.
- We recommend reviewing existing borrower outreach policies and preparing to update data usage agreements, marketing scripts, and FCRA disclosures in line with new statutory standards.
For further guidance or tailored advice, please contact the Regulatory Affairs team.
[1] https://newslink.mba.org/mba-newslinks/2025/june/mba-newslink-friday-june-13-2025/mba-applauds-senate-passage-of-trigger-leads-bill/?utm_campaign=MBA%20NewsLink%20Friday%20June%2013%202025&utm_medium=email&utm_source=Eloqua
[2] https://nationalmortgageprofessional.com/news/trigger-leads-bill-clears-senate
[3] https://ncdoj.gov/wp-content/uploads/2025/06/Homebuyers-PPA-Trigger-Leads_FINAL.pdf
[4] https://www.consumerfinancemonitor.com/2025/06/12/house-financial-services-committee-approves-trigger-leads-bill/
[5] https://www.msn.com/en-us/money/realestate/congress-considers-a-crackdown-on-those-spammy-calls-from-mortgage-lenders/ar-AA1GFc5X?ocid=BingNewsSerp