Trump Signs Trigger Lead Bill Into Law Protecting Homebuyers

Homebuyers will soon have an added layer of protection when shopping around for a mortgage after President Donald Trump signed into law the Homebuyers Privacy Protection Act on Sept. 5.

The law, which will go into effect March 5, 2026, is designed to prohibit the abuse of what's known as trigger leads, which are when credit bureaus sell a borrower’s information immediately after a mortgage credit inquiry. The law makes it illegal for credit bureaus to do so without consumers' consent.

The signing brings to a close a lengthy mortgage industry campaign against the practice, with the law receiving mortgage and housing industry support.

“The National Association of Realtors^® strongly supported this legislation from day one, fighting to end a practice that bombards homebuyers with unwanted calls, texts, and emails at one of the most important moments of their lives,” said Shannon McGahn, NAR executive vice president and chief advocacy officer.

“This is a win for transparency, consumer control, and privacy in the mortgage process. We are grateful to the president for signing this act into law; to Representatives [John] Rose and [Ritchie] Torres for leading this effort; and to the bipartisan coalition in Congress that made it possible. Homebuyers now have a stronger shield to protect their personal information, and that’s a victory for every future homeowner in America.” 

What it means for homebuyers

The law protects client data. It means credit offers can only be made if the consumer has provided consent or if the offer comes from their current mortgage originator, servicer, bank, or credit union.

Industry leaders say this is major win for both borrowers and mortgage professionals. Essentially, borrowers will be protected from the flood of unwanted calls, texts, and emails a consumer may receive after applying for a mortgage.

“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 Mortgage Bankers Association President and CEO Bob Broeksmit. "It will create a more efficient, responsible, and respectful homebuying process when it goes into effect on March 5, 2026."

What it means for lenders

The bill's passage was expected by mortgage professionals who were already preparing to make adjustments.

The law will help protect mortgage borrowers when they're shopping around for the right mortgage. Consumers will still be comparing options, offers, and seeking second opinions.

But mortgage brokers will now be required to be transparent and inform their clients of their rights—especially as borrower data will soon be more secure.

Brendan McKay, Broker Action Coalition’s chief advocacy officer and an outspoken proponent in the campaign to eradicate the practice, hailed the news as a testament to the industry’s resilience and unity on the issue in a LinkedIn post.

“This legislation proves what can happen when mortgage brokers come together to solve a problem instead of just debating it,” McKay wrote. “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.”