Unsolicited sales of mortgage applicant data by credit bureaus led to homebuyers being bombarded with offers
of ConsumerAffairsAugust 7, 2025
- New law prohibits unsolicited sale of mortgage applicant data by credit bureaus
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Homebuyers often bombarded by predatory offers after applying for loans
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Legislation passes unanimously; heads to President Trump for signature
Congress has passed the Homebuyers Privacy Protection Act, a bipartisan bill aimed at curbing a controversial practice known as trigger leadswherein credit bureaus sell personal data from mortgage applicants to third-party lenders without the applicants’ consent.
Once signed by President Donald Trump, the new law will prohibit credit reporting agencies from selling mortgage-related leads unless the consumer has explicitly authorized the sale or has a prior business relationship with the recipient of their data.
Thanks to bipartisan leadership and unanimous support in Congress, homebuyers soon will have more control over their data and one less thing to worry about, said Mike Litt, Consumer Campaign Director at U.S. PIRG.
The now-restricted practice worked like this: when a consumer applied for a mortgage, the credit check would alert credit bureaus, who would then generate trigger leads to sell to competing lenders. This often resulted in aggressive marketing, including spam texts, robocalls, emails, and unsolicited offersmany of which were predatory or misleading, according to consumer advocates.
Its absurd that applying for a mortgage in recent years has triggered spam, Litt added. No one should have the right to sell a homebuyers personal information without that consumers say.
Broad bipartisan support
The bill enjoyed rare bipartisan momentum, with Reps. John Rose (R-Tenn.) and Ritchie Torres (D-N.Y.) sponsoring the legislation in the House, and Sens. Jack Reed (D-R.I.) and Bill Hagerty (R-Tenn.) leading the charge in the Senate. It passed unanimously in both chambers, signaling widespread concern over data privacy in the digital mortgage landscape.
In a press release Bob Broeksmit, President and CEO of the Mortgage Bankers Association (MBA) called the bill “a long-overdue measure that will finally put an end to the abusive use of mortgage credit trigger leads.
“This new law will help protect consumers from the barrage of unwanted calls, texts, and emails they too often receive immediately after applying for a mortgage. It marks a major victory for borrowers and will create a more efficient, responsible, and respectful home buying process, Broeksmit said.
Once enacted, the law is expected to offer relief to millions of homebuyers across the countrygiving them more control over their personal information at one of the most financially vulnerable moments in their lives.
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