New Federal Law Bans Abusive Use of Trigger Leads

On Friday, September 5, President Donald Trump signed the Homebuyers Privacy Protection Act into law. The legislation establishes a nationwide ban on the abusive use of trigger leads, set to take effect March 5, 2026.


Trigger Leads: A Long-Time Concern for Homebuyers 

Trigger leads have long been a concern in the mortgage industry. When a consumer applies for a mortgage, their information may be sold to other lenders, often resulting in a flood of unsolicited calls, texts, and emails. The new law aims to put an end to this practice by giving homebuyers greater control over how their personal information is used.

How the “Trigger Leads Bill” Became Law

The bill was co-sponsored by U.S. Representatives John Rose (R-Tenn.) and Ritchie Torres (D-N.Y.), reflecting broad bipartisan support. A previous version cleared the Senate in late 2023 but stalled in the House. This year, momentum grew—driven in part by advocacy from mortgage industry trade groups—and the measure ultimately passed both chambers of Congress before reaching the President’s desk.

A number of industry leaders have praised the legislation. “This new law is a major victory for mortgage borrowers that will protect them from the barrage of unwanted calls, texts and emails they too often received immediately after applying for a mortgage,” said Bob Broeksmit, President and CEO of the Mortgage Bankers Association. “It will create a more efficient, responsible, and respectful home buying process when it goes into effect on March 5, 2026.”

Under the new law, companies may not make offers of credit unless the consumer has provided explicit consent, or the offer comes from their existing originator, servicer, bank, or credit union. This ensures borrowers are contacted only by parties they have chosen to work with.

Closing Thoughts

For homebuyers, the law represents an important step toward protecting personal information during one of life’s biggest financial decisions. By curbing the misuse of trigger leads, consumers will experience fewer unwanted solicitations and a more focused, transparent mortgage process.