The Homeowners Privacy Protection Act, also known as the Trigger Leads Bill, was introduced on April 10, 2025. After undergoing committee review and a few amendments, it was passed by Congress on August 2, 2025. The primary purpose of the bill is “to amend the Fair Credit Reporting Act to prevent consumer reporting agencies from furnishing consumer reports under certain circumstances, and for other purposes.” This legislation represents a significant advancement for consumers involved in purchasing or refinancing a home, as it aims to reduce the volume of unsolicited calls, emails, and texts from brokers who purchase consumer information following credit inquiries in an attempt to solicit business.
What are the key provisions of the Trigger Leads Bill?
The bill prohibits the sale of trigger leads except under the following circumstances:
Why is there an exception for banks and credit unions and what does the exception entail?
It is generally considered that banks and credit unions are better positioned to make a definitive “firm offer of credit” compared to mortgage brokers. This is due to the numerous variables involved in mortgage transactions that could impact the closing process with a broker. There is ongoing discussion within the industry regarding this perception, as many mortgage brokers believe it may create an unfair advantage for banks and credit unions.
To utilize trigger leads, a bank or credit union must have at least one account with the consumer, which could be as simple as a checking or savings account. There is no requirement for the consumer to have an active loan, allowing these institutions to continue using trigger leads effectively.
What happens now?
The President is expected to sign the bill soon. Once that happens then the rule will go into effect in about six months. Once signed by the President either the FHFA or the FTC will take over and put together the details of the regulation. The normal time frame would be 3 months, but since this is being turned over and there are changes the bureaus will have to make in their systems to comply, they extended the start date by six months. If it is signed in the next few weeks, then it should go into effect late February 2026.
How does one “opt in”?
This is To Be Determined. It could be that the borrower will opt in through the same website they go to now to Opt Out. Or it could be that there is something the loan officer must do on their side when credit is pulled. This will be determined by either the FHFA or FTC.
What is the GOA study? (Government Accountability Office)
This was originally included in the House Bill. After both the House and Senate passed their respective versions, a conference committee was convened to decide whether the study should be removed from the House Bill or incorporated into the Senate Bill. The decision was made to include it in the Senate Bill.
The focus of this study is on trigger leads sent via text message. Its purpose is to evaluate the effectiveness of trigger leads by text and their impact on consumers. The objective is to identify any potential legislative loopholes that may necessitate additional restrictions on trigger leads by text, or alternatively, to assess whether such triggers should be subjected to less regulation.
Upon enactment of the bill, the Government Accountability Office (GAO) will have one year to conduct the study. The GAO will gather insights from mortgage brokers, banks, credit unions, state regulators, consumers, and consumer reporting agencies. Once the study is completed, the GAO will report findings to Congress, which will then determine if further regulatory measures are warranted for text message trigger leads.
Since the bureaus make significant profit from Trigger Leads, do they have a plan to recoup that lost revenue?
There is a lot of speculation right now as to how the bureaus are going to deal with this. There are several options being discussed.
The final option presents certain challenges, particularly as Vantage Score becomes more widely adopted. Since Vantage Score is generally less costly than FICO scores, increasing the price of FICO scores could make them less competitive in the market. While not entirely eliminating their use, this adjustment could lead to a reduction in their utilization.
Ultimately, numerous details remain to be finalized, a process that could take several months. The Federal Housing Finance Agency (FHFA) or the Federal Trade Commission (FTC) will be responsible for developing the final details of the regulation. We will be monitoring this process closely as it progresses.