Congress Moves to Curb Trigger Leads: What Mortgage Executives Need to Know Now

On June 12, 2025, the U.S. Senate passed the Homebuyers Privacy Protection Act (S. 1467) – bipartisan legislation that would limit the use of trigger leads in the residential mortgage market. Just days earlier, a companion bill (H.R. 2808) cleared the House Financial Services Committee and is slated for a full House vote on June 23, 2025.

With strong industry backing and rare bipartisan momentum, the bill is closer than ever to becoming law.

Mortgage leaders must begin evaluating lead-generation strategies now. Here’s what is coming and what it means for your business.

What Are Trigger Leads—and Why Are They Controversial?

Trigger leads are credit-based alerts sold by credit bureaus after a consumer’s credit report is pulled for a mortgage application. Competing lenders can purchase this information and aggressively solicit the borrower, often while the original loan is still in process.

The practice has drawn criticism across the industry due to:

• Consumer confusion and perceived bait-and-switch offers

• Privacy concerns over real-time data sales

• Pipeline disruption, especially in high-volume markets

For mortgage lenders, trigger leads have been both a source of lead generation and a point of friction, especially when deals are interrupted mid-cycle.

What Would the Bill Change?

The Homebuyers Privacy Protection Act would amend the Fair Credit Reporting Act (FCRA) to place strict limits on the sale of trigger leads. Under the proposed language, credit bureaus could only sell trigger leads if:

1.        The request is tied to a firm offer of credit or insurance, and

2.        The requesting entity either:

• Has explicit consumer authorization, or

• Has an existing relationship with the consumer, such as:

  • Originated the borrower’s current mortgage

  • Services the mortgage

  • Holds a current deposit account with the consumer

This could dramatically narrow the pool of eligible recipients and potentially disrupt current third-party lead generation channels.

Why This Legislation Matters for Mortgage Companies

If passed, this law will force a strategic pivot for originators, servicers, lead vendors, and marketing teams that rely on trigger leads for borrower acquisition.

For mortgage companies, the bill:

• Reduces exposure to mid-process borrower poaching

• Improves borrower trust during the origination process

• Increases compliance obligations for any firm still sourcing leads via credit data

It also signals greater regulatory scrutiny of consumer data usage – especially in marketing – and could spur state-level copycat legislation or additional federal action.

What C-Suite Leaders Should Do Now

1.        Audit Lead Sources – Understand where your leads are coming from, particularly any tied to credit bureau data or third-party alerts.

2.        Review Credit Bureau Contracts – Update agreements to reflect potential changes to FCRA and ensure future compliance.

3.        Evaluate In-House Marketing Channels – Strengthen owned data strategies (CRM, website leads, referrals) to reduce dependency on external lead sales.

4.        Coordinate with Compliance and Legal – Prepare for a fast regulatory shift by aligning marketing, compliance and risk teams.

5.        Monitor House Action – A House floor vote is expected on June 23, 2025. A reconciled bill could be on the President’s desk before summer recess.

State-Led Pressure Is Building Too

Several states have introduced or enacted laws that purport to restrict trigger leads. Even if federal legislation stalls, state-level enforcement could drive similar operational changes.

Now is the time to future-proof your lead generation practices.

Key Takeaways for Executives

• The Homebuyers Privacy Protection Act is closer than ever to becoming law.

• The legislation would significantly restrict trigger lead sales and impact how mortgage companies source leads.

• Proactive preparation is essential and compliance, marketing and legal teams should begin coordinating now.

• Consumer trust, data transparency, and state-federal regulatory trends are all converging on lead-gen practices.

Bottom Line:

Trigger leads are on the chopping block. This legislation will reshape how mortgage companies compete for borrowers and how they build trust. Take action now to assess risk, update strategies, and stay compliant in a changing regulatory landscape.

Read the bill here.

Questions?

Our team helps mortgage lenders and servicers stay ahead of emerging federal and state compliance requirements. For legal guidance on how this legislation may affect your operations and marketing strategy, contact Troy Garris at troy@garrishorn.com,