Congress has officially passed the Homebuyers Privacy Protection Act (H.R. 2808), a bipartisan bill that modifies the Fair Credit Reporting Act (FCRA) to prevent the misuse of mortgage trigger leads.¹ The legislation, which passed the House in June and cleared the Senate on early August, awaits the President's signature. In this edition of Mortgage Monitor, we explain what a trigger lead is, outline the bill’s key provisions, and explore its implications for borrowers and lenders.

Trigger Leads 101

When a prospective borrower applies for a mortgage, the lender conducts a credit inquiry to evaluate their creditworthiness. This inquiry is recorded by companies known as credit reporting agencies—like Equifax, Experian, and TransUnion. These agencies collect and maintain credit data for millions of consumers and are responsible for generating credit reports.

Once the inquiry is logged, the borrower may be flagged as a "trigger lead." That means their contact information can be sold to other lenders and mortgage companies who may then reach out with unsolicited offers—often within hours or days of applying. Many borrowers are unaware this is even possible, and it can feel like a serious invasion of privacy.

For more background on how trigger leads work and how they impact borrowers, see our earlier article: Trigger Leads and Credit Offers.

What the Bill Changes

Under this new legislation, a borrower's contact information can only be sold to third-party lenders and mortgage companies under more limited circumstances. Specifically, a credit reporting agency would not be able to furnish a trigger lead to a third party unless the third party has certified that:
 

• The consumer explicitly consents to such solicitations;¹
• The third party originated the consumer’s current residential mortgage loan;¹
• The third party is the servicer of the consumer’s current residential mortgage loan;¹ or
• The third party is an insured depository institution or insured credit union and holds a current account for the consumer.¹

These exceptions are designed to protect borrowers from unsolicited outreach while preserving communication with institutions they already trust or do business with.

Why This Matters

For many borrowers, applying for a mortgage can unintentionally expose their contact information to dozens of unfamiliar lenders. These companies may flood the borrower with calls, texts, and emails—often within hours of a credit inquiry. This can be confusing, disruptive, and even misleading, especially for first-time buyers or those unfamiliar with the process.

By limiting access to trigger leads, the bill aims to:
 

• Reduce unwanted solicitations during a sensitive financial decision
• Protect borrower privacy and prevent misuse of personal data
• Preserve trust between borrowers and their chosen lenders
• Support a more transparent and respectful lending environment

This legislation marks a significant shift toward consumer-first practices in mortgage lending, and it’s expected to improve the experience for both borrowers and professionals across the industry.

Greater Privacy for Consumers

If signed into law, H.R. 2808 is set to take effect six months after enactment, enhancing consumer privacy and reducing the abusive use of trigger leads.² 

"Consumers will be able to seek home loans from lenders, knowing their personal financial information won't be sold to third parties," said Robert Odom, president of the mortgage division at Ameris Bank. "In addition to enhancing consumer privacy, this bill should help curtail the influx of unsolicited calls, texts, and emails borrowers may receive after applying for a mortgage. This is a win-win for both borrowers and their trusted lenders."

For homebuyers, this means a more secure and focused mortgage experience—without the distractions of competing offers from unfamiliar lenders. For agents, it helps reduce confusion and protect the client’s confidence in the professionals they’ve chosen to work with.

Ameris Bank supports efforts to protect borrower privacy and will continue to provide updates as the legislation moves forward. In the meantime, borrowers can take steps to safeguard their information by learning more about trigger leads and how to opt out of unsolicited offers.


Sources:
¹ https://www.congress.gov/bill/119th-congress/senate-bill/1467/text
² https://www.scotsmanguide.com/news/trigger-leads-legislation-passes-through-full-senate-by-unanimous-consent/


The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Ameris Bank does not endorse nor is affiliated with the companies listed in this article.