A Landmark Consumer Privacy Win
President Donald Trump has signed the Homebuyers Privacy Protection Act into law, officially banning the controversial practice of selling mortgage trigger leads. The legislation, championed by Reps. John Rose (R-TN) and Ritchie Torres (D-NY), earned overwhelming bipartisan support before reaching the president’s desk.
Industry experts say the measure will reshape competition in the mortgage industry while giving homebuyers stronger protections over their personal financial data.
What Are Trigger Leads?
Trigger leads occur when a consumer applies for a mortgage. Credit bureaus then sell that applicant’s data to other lenders, often without the borrower’s knowledge or consent.
This practice has flooded many buyers with unsolicited calls and offers at a time when they are most financially vulnerable. Critics argue it undermined consumer trust and privacy, while supporters claimed it encouraged competition.
Protections Under the New Law
The Homebuyers Privacy Protection Act prohibits the bulk sale of consumer data tied to mortgage applications. While borrowers can still shop for the best rate, their personal information can no longer be sold freely to competing lenders.
Rep. French Hill (R-AR), chair of the House Financial Services Committee, praised the bill, saying:
“This important bill protects homebuyers’ personal financial information, while encouraging competition and choice in the mortgage market.”
Path to Passage
The bill advanced with near-unanimous support:
- June 10, 2025: Passed the House Financial Services Committee 46-0
- June 23, 2025: Approved by House voice vote
- August 2, 2025: Cleared the Senate by unanimous consent
- September 5, 2025: Signed into law by President Trump
Impact on Mortgage Brokers and Lenders
The ban on trigger leads presents both opportunities and challenges for the mortgage industry:
- Less cold solicitation → borrowers face fewer privacy invasions
- More emphasis on relationships → brokers must compete through transparency, trust, and personalized service rather than purchased leads
- Shift in marketing strategies → success will favor originators who position themselves as trusted advisors and educators
Looking Ahead
The new law represents a turning point in the mortgage industry. By eliminating trigger leads, it strengthens consumer protections while forcing lenders to adapt to a more relationship-driven marketplace.
As the industry shifts, borrowers may find a process that is less invasive, more transparent, and more focused on trust than ever before.