HousingWireHousingWire
The federal bill that seeks to eliminate abusive trigger leads took a major step forward this week, advancing in the U.S. House of Representatives and reigniting hopes across the mortgage industry that it could soon become law.
Late Tuesday, the House Financial Services Committee passed the Homebuyers Privacy Protection Act (H.R. 2808), which is designed to curb the controversial practice of abusive trigger leads where consumer credit inquiries prompt a flood of unsolicited calls, texts and emails from competing lenders.
“This vote shows that Congress has come to the same conclusion the rest of us have: the status quo on trigger leads is simply untenable,” Isaac Boltansky, head of public policy at Pennymac, said in a statement.
“From the committee’s vote to the newfound support from dozens of state attorneys general, this legislation has a strong tailwind and we hope that it will be on the president’s desk later this year.”
In a conversation with HousingWire’s Sarah Wheeler at The Gathering, Bob Broeksmit, the head of the Mortgage Bankers Association (MBA), said the move has “been a long time coming” and will benefit consumers.
Given that the Senate has adopted similar legislation, stakeholders expect the bill to become law this year. “Then this long nightmare will be behind us,” Broeksmit said.
A similar bill cleared the Senate in 2024 as part of the National Defense Authorization Act, but it failed to pass the House. The updated version — reintroduced in the 119th Congress in April — has bipartisan, bicameral support. Its sponsors including Sens. Bill Hagerty (R-Tenn.) and Jack Reed (D-R.I.), along with Reps. John Rose (R-Tenn.) and Ritchie Torres (D-N.Y.).
The legislation prohibits unsolicited credit offers via phone, email, text or mail unless the consumer has given explicit consent. Exceptions are made for a consumer’s mortgage originator or servicer, as well as depository institutions or credit unions with an existing customer relationship.
The revised bill also added that companies using trigger leads must be prepared to make a bona fide, or “firm,” offer of credit.
Opponents of the bill, like Rep. Young Kim (D-Calif.), believe it works against consumers because a large number of them don’t shop for mortgage offers. The Consumer Data Industry Association (CDIA), which represents consumer credit reporting companies, did not reply to HousingWire’s request for comment.
The National Association of Mortgage Brokers (NAMB) applauded the vote, calling the bill a critical step toward protecting homebuyers’ personal financial data.
“The Homebuyers Privacy Protection Act directly addresses the troubling issue of trigger leads — a practice that exposes consumers to unwanted solicitations and potential confusion just as they are making one of the most important financial decisions of their lives,” NAMB President Jim Nabors said in a statement.
The House committee also adopted an amendment that directs the Comptroller General to study the value and impact of trigger leads delivered via text message. The findings are due within 12 months of the bill’s enactment.
The next step is a full House vote, with timing to be set by House leadership. In the Senate, a similar bill has not yet been scheduled for a vote, but industry stakeholders expect it could pass by unanimous consent — or that momentum in the House may accelerate the process.
Since the House and Senate versions share identical language, a conference committee would only be necessary if amendments alter the bill in either chamber. The exact timeline for the bill to reach the House floor or the president’s desk remain uncertain.
“This is a major milestone — but not the finish line,” said Brendan McKay, owner of McKay Mortgage and chief advocacy officer at the Broker Action Coalition. “The further we go, the more likely we are to encounter unexpected hurdles.”
The Community Home Lenders of America (CHLA) also praised the committee’s vote, especially the inclusion of provisions that protect the borrower-lender relationship for smaller originators.
“Since the Senate has adopted similar legislation, we are confident a bill can soon become law,” CHLA said in a statement.
