A Win for Borrowers and Lenders: Congress Moves to Curb Abusive Trigger Leads

The mortgage world just took a major step forward in protecting consumers and mortgage professionals alike. In a unanimous 46-0 vote, the House Financial Services Committee approved H.R. 2808, a bipartisan legislation aimed at ending the misuse of mortgage “trigger leads.” This marks a significant win for the industry and an even bigger win for your peace of mind.

First, What Are Trigger Leads?

Trigger leads are generated when a consumer applies for a mortgage loan and a credit inquiry is made. Credit bureaus then sell this information to other lenders, who use it to aggressively solicit those same consumers, often bombarding them with calls, emails, and even misleading offers.

While legal, this practice has long raised serious concerns about privacy, client poaching, and consumer confusion. That’s why this latest move by Congress is such a big deal.

What’s in the Bill?

H.R. 2808, now moving swiftly through Congress, mirrors a Senate-passed version from last year with only one addition: a Government Accountability Office (GAO) study to further investigate the issue. This legislation:

• Protects consumer data by limiting how mortgage credit inquiries can be used for unsolicited marketing.
• Safeguards lender-client relationships by preventing other lenders from exploiting credit inquiries to poach clients mid-process.
• Ensures fair treatment of all lenders, including smaller independent mortgage banks (IMBs), which were initially excluded from prior versions of the bill.

You can read the full text of the bill here: H.R. 2808

Who Fought for This and Won?

The push to curb abusive trigger leads wasn’t driven by one organization but instead the result of a broad, sustained coalition effort. Groups like the Community Home Lenders of America (CHLA) and the Mortgage Bankers Association (MBA) played major roles in getting this legislation across a crucial milestone.

CHLA helped reignite interest in 2022 with a letter to the CFPB and worked to ensure protections for smaller lenders. Meanwhile, MBA led the charge on legislative language, policy formation, and direct Congressional advocacy. Their teams engaged in countless meetings, negotiated amendments, and helped unify diverse interests which included brokers, banks, credit unions, and consumer advocates.

This collaboration is a great example of what happens when industry voices align on behalf of consumers and client relationships.

Why This Matters for You

Whether you're applying for a mortgage or helping someone navigate their home loan journey, you deserve a process free from unnecessary pressure and predatory sales tactics. This legislation does just that:

• For homebuyers: You’ll no longer be overwhelmed by unwanted solicitations just because you applied for a loan.
• For lenders: Your client relationships are better protected, giving you the freedom to serve without interference.

What’s Next?

The bill is expected to pass quickly through the Senate since it closely mirrors what’s already been approved, and then move on to the President’s desk for signature.

Final Thoughts

This is more than just a policy update, it’s a moment of progress. It shows what’s possible when real concerns are heard, advocacy is strategic, and lawmakers work across the aisle to create better outcomes for borrowers and lenders alike.

We’ll keep you updated every step of the way. But for now, take a moment to celebrate: Your voice, your data, and your work just got the protection they deserve.