In a big win for home buyers, the Homebuyers Privacy Protection Act (H.R. 2808) has officially been signed by President Trump after being passed by both the Senate and House of Representatives. This groundbreaking legislation will put an end to the practice of “trigger leads” in the mortgage industry, protecting consumers' personal information from being sold to third parties without their consent after applying for a mortgage.
When you apply for a mortgage, credit bureaus pull your credit report. Historically, after this inquiry, your personal information—such as contact details—was sold to third parties, including mortgage brokers, lenders, and other businesses. These third parties would then reach out to you with unsolicited offers, causing frustration, confusion, and sometimes leading to poor decision-making during the home-buying process.
This practice, known as trigger leads, has long been a pain point for consumers, as the barrage of unwanted communications can undermine confidence and slow down what should be a straightforward process.
The bill, supported by bipartisan leaders Reps. John Rose (R-TN) and Ritchie Torres (D-NY) in the House, and Sens. Jack Reed (D-RI) and Bill Hagerty (R-TN) in the Senate, aims to tackle this issue by amending the Fair Credit Reporting Act. The law will stop the sale of mortgage application data unless certain conditions apply:
The Homebuyers Privacy Protection Act will protect your sensitive data and give you control over who gets access to your personal information. You won’t have to worry about unsolicited communications that can flood your phone and inbox, frustrating your home-buying journey. This law is about giving you control, ensuring that the buying process is clear, focused, and free of distractions.
The law is a major win for consumer privacy, backed by bipartisan support and advocacy from groups like the Community Home Lenders of America and the National Association of Mortgage Brokers. This bill reflects a shift towards more privacy protection in the mortgage industry. As Bob Broeksmit, president of the Mortgage Bankers Association (MBA), said:
"MBA celebrates the final passage of this important bill — a long-overdue measure that will finally put an end to the abusive use of mortgage credit trigger leads. This new law will help protect consumers from the barrage of unwanted calls, texts, and emails they too often receive immediately after applying for a mortgage. It marks a major victory for borrowers and will create a more efficient, responsible, and respectful home buying process."
The new law will be effective starting March 5, 2026. This marks the beginning of a new era in consumer data protection and will likely inspire further privacy legislation across states. States like Texas and Idaho have already taken steps to limit trigger leads, and this federal law will help standardize protections across the country.
For consumers tired of unsolicited mortgage solicitations, this change is a welcome relief. The Homebuyers Privacy Protection Act makes your personal information safer and ensures that your home buying experience is more secure, transparent, and less stressful.
This is a win for consumers, the mortgage industry, and privacy advocates everywhere.
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