Bill to Ban Mortgage ‘Trigger Leads’ Gains Support

Buying a home can already be stressful enough. Between inspections, paperwork, and financing, the last thing homebuyers want is to be bombarded with calls from lenders they never contacted. But for many, that’s exactly what happens the moment they apply for a mortgage, and it’s all thanks to a controversial marketing practice known as “trigger leads.”

Now, that could soon change.

A bipartisan group of lawmakers is pushing forward the Homebuyers Privacy Protection Act, a bill designed to ban the sale of “trigger leads”, the practice where credit bureaus sell a consumer’s data to lenders after a mortgage credit check. The bill has already passed the U.S. Senate and is now gaining momentum in the House of Representatives.

Trigger leads are created when a borrower applies for a mortgage and a lender runs a credit check. That credit inquiry gets flagged, and credit bureaus can then sell that information to competing mortgage companies, often within hours. Suddenly, borrowers may receive a flood of phone calls, texts, and emails from unknown lenders trying to offer them deals.

While this practice is technically legal, critics say it’s intrusive and predatory.

“Most buyers don’t even know this happens,” said one supporter of the bill. “They apply for a loan with a lender they trust, and then they’re overwhelmed by unsolicited offers. It’s not fair, and it’s not right.”

Supporters of the Homebuyers Privacy Protection Act say the bill is about restoring control to consumers and creating a level playing field for lenders. Smaller, community-based lenders often lose out when national companies swoop in with aggressive marketing tactics.

Privacy advocates also argue that consumers should have more control over who accesses their sensitive financial data.

If approved by the House, the bill could become law later this summer, marking a major win for consumer privacy in the housing market.

Opponents of the bill, primarily in the credit and marketing industries, argue that trigger leads give buyers more choices and can lead to better mortgage rates. But the growing bipartisan support suggests Congress is leaning toward stronger privacy protections over marketing convenience.

In a housing market that’s already challenging for many first-time buyers, lawmakers say it’s time to remove unnecessary hurdles, especially ones that can feel invasive and misleading.

As the bill moves through Congress, buyers, lenders, and privacy advocates alike are watching closely. For many, this legislation represents a much-needed step toward a more respectful and transparent home-buying process.