President Trump signed a bill Friday that will curtail, but not ban, mortgage “trigger leads” generated by credit bureaus when borrowers apply for home loans.
When H.R. 2808, “The Homebuyers Privacy Protection Act” takes effect in 180 days, credit bureaus will be prohibited from selling mortgage applicants’ information to other lenders — with a few exceptions.
Consumers can opt in if they want to receive firm offers of credit from a full range of mortgage lenders. Even if they don’t, credit bureaus will still be able to sell trigger leads to a mortgage applicant’s current mortgage lender, loan servicer, or any bank or credit union they have an account with.
The law also requires lenders using trigger leads to make a “firm offer of credit” when they reach out to borrowers.
That loophole could help lenders keep their clients from defecting to a competitor by offering them a better deal. But if they’re not in the loan servicing business, they might also have to compete with their client’s loan servicer or bank.
Lenders who advocated for the new restrictions included AmeriHome Mortgage, Equity Prime Mortgage, Freedom Mortgage, Guild Mortgage, Rocket Mortgage and Union Home Mortgage. Industry groups like the Mortgage Bankers Association and American Bankers Association registered to lobby for it, according to records compiled by OpenSecrets.org.
“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,” MBA President Bob Broeksmit said in a statement Friday. “It will create a more efficient, responsible, and respectful home buying process when it goes into effect on March 5, 2026.”
With mortgage rates hitting a new low for the year on Friday, lenders are hoping that more homebuyers will get off the fence, and that many existing homeowners will be motivated to refinance.
Rocket, which is poised to acquire the nation’s largest loan servicer, Mr. Cooper, has set a goal of capturing 20 percent of all U.S. refinancings by 2027. Together, Rocket and Mr. Cooper service about $2 trillion in outstanding loans, collecting monthly mortgage payments on about one in six U.S. mortgages.
Rival United Wholesale Mortgage (UWM) is the nation’s biggest loan originator, but has allowed its loan servicing portfolio to shrink to $211 billion as of June 30.
UWM CEO Mat Ishbia says AI and competitive pricing will help the independent mortgage brokers it works with compete for borrowers. The Pontiac, Michigan-based lender boosted second quarter refinancing volume by 93 percent, to $12.4 billion.
“Most people think you need to have the client in your servicing book to refinance them,” Ishbia said on the company’s Q2 earnings call. “We don’t refinance any borrowers — our brokers do.”
While some lenders may think the new rules for trigger leads means there will be less competition for borrowers, leads will still be available, Ishbia said.
“People think [the new trigger lead legislation] means, ‘Oh, now I’ve got a client and they’re never going to be shopped. I’m going to be set,’” Ishbia told mortgage brokers in a Facebook bulletin. “That’s not how this is really going to go.”
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