The federal trigger leads bill advanced in the U.S. House of Representatives after being officially noticed during a hearing of the Subcommittee on Financial Institutions on Tuesday.
The Homebuyers Privacy Protection Act is expected to be considered during a markup session on May 20 — a process that determines whether a bill should be recommended for a full House vote and in what form.
“This is what we’ve been waiting for — a chance to have an open and transparent debate about the merits of the bill,” said Bill Killmer, senior vice president for legislative and political affairs at the Mortgage Bankers Association (MBA), which is part of a coalition of 17 groups representing housing and financial services stakeholders and advocates.
The trigger leads bill failed to pass the House at the end of 2024, despite receiving approval from the Senate. It was reintroduced in the 119th Congress on April 10 as a bicameral, bipartisan effort (S. 1467 and H.R. 2808), led by Sens. Bill Hagerty (R-Tenn.) and Jack Reed (D-R.I.), along with Reps. John Rose (R-Tenn.) and Ritchie Torres (D-N.Y.).
While trigger leads are legal, consumers often report receiving hundreds of calls, texts and emails with offers of credit. This often happens when a potential borrower’s credit is pulled for a mortgage application and a credit bureau sells that information to other companies seeking to market to the consumer.
A version of the bill attached to the 2025 National Defense Authorization Act (NDAA) prohibits all forms of solicitation — including calls, mail, emails or texts — unless explicitly authorized by the consumer, transitioning from an “opt-out” to an “opt-in” model.
This version still allows solicitations by a consumer’s mortgage originator and servicer, as well as from insured depository institutions and credit unions with existing consumer relationships.
The reintroduced bill differs slightly from the version passed by the Senate and attached to the NDAA in December. It now includes a clarification affirming that companies using trigger leads must be prepared to make a bona fide — or what the statute calls a “firm” — offer of credit, Killmer said.
“We’ve always supported making bona fide offers of credit,” Killmer added.
He said this provision targets some players in the industry that have engaged in practices that could be considered predatory or even fraudulent. They may present themselves as the original lender, when in reality they’re using trigger leads as a marketing tool.
HousingWire previously reported that the Consumer Data Industry Association (CDIA) was working to modify the language of the bill by proposing a more limited version. According to sources, this alternative would allow “written offers” via mail, email or text from any company that receives a mortgage lead. It would include a two-year implementation period.
Despite ongoing negotiations, Killmer said he expects the bill to pass in 2025. If enacted, companies would have six months to comply — a timeline he considers “more than enough.”
