New law curbs trigger leads—brokers and borrowers see a win for privacy.
President Trump’s signature on the Homebuyers Privacy Protection Act Friday marked a turning point for mortgage data privacy, ending years of industry lobbying against the controversial practice of trigger leads. The new law, effective March 5, 2026, will prohibit credit bureaus from selling a borrower’s information after a mortgage credit inquiry unless the consumer consents or the offer comes from their current lender or servicer.
Industry groups have long argued that trigger leads—where credit bureaus sell a consumer’s data to competing lenders immediately after a mortgage application—exposed borrowers to a barrage of unsolicited offers and privacy risks.
“This legislation proves what can happen when Mortgage Brokers come together to solve a problem instead of just debating it,” said Brendan McKay, chief advocacy officer at the Broker Action Coalition (BAC).
“It shows what’s possible when organizations set aside differences and collaborate on a common goal. And it demonstrates that, at least sometimes, consumer interests can still win out over corporation profits in DC, and there just might still be reason for hope after all,” McKay said.
Bob Broeksmit, president and CEO of the Mortgage Bankers Association (MBA), called the law a “major victory” for mortgage borrowers.
“It will protect them from the barrage of unwanted calls, texts, and emails they too often received immediately after applying for a mortgage,” Broeksmit said.
Jim Nabors, president of the National Association of Mortgage Brokers (NAMB), said the law “ensures a fairer, more respectful, and less intrusive mortgage experience for Americans” and described it as “a win not just for our industry, but for every American seeking the dream of homeownership without the fear of their personal information being exploited.”
Senator Jack Reed, a sponsor of the bill, called it a "big, bipartisan win for consumers," noting it would halt unwanted solicitations and predatory mortgage marketing. Reed emphasized this as a rare data privacy victory, putting consumers back in control and reducing spam from unsolicited calls, texts, and emails.
New law could impact competition
Some lenders cautioned that the law could harm competition. This will require lenders to find other ways to reach out to mortgage customers when they are ready to begin the homebuying or refinancing process. Bruce Gehrke, senior director of wealth and lending intelligence with JD Power, sees companies preparing for those controversial leads to disappear, or to be limited to the servicer.
"Expect the credit bureaus to fight back, as this could reduce their revenue. Data brokers also buy trigger leads in bulk and sell them to mortgage lenders and other institutions," Gehrke told Mortgage Professional America.
"Obviously, there's revenue in it for them, so it's going to be a bit of a battle. But from what I've heard in the industry, the cost of soft pull credit reports, which aren't reported like that, has skyrocketed, because nobody wants that hard pull until that really nails somebody down."
Several companies also introduced new technology to reach potential mortgage customers before they apply for a new loan. Gehrke said even if trigger leads don’t go away, eventually brokers who wait for that lead may be playing catch-up.
“There's so much capability when you see what is capable in artificial intelligence, developing agents that may look at other databases, assess equity levels, try to understand other pieces of consumer data, and combine all that very quickly. It is game-changing.”
