The Homebuyers Privacy Protection Act (H.R. 2808) passed through the U.S. Senate with unanimous consent and without amendments late Saturday. The legislation gained approval from the U.S. House of Representatives earlier in June.
The legislation is designed to enact a national prohibition on the misuse of trigger leads. Under this act, companies are prohibited from making credit offers unless the consumer has provided explicit consent or the offer is from their existing mortgage originator, servicer, depository institution or credit union. Additionally, companies must be ready to extend a genuine credit offer, referred to as a “bona fide” offer.
The bill achieved bipartisan and bicameral backing, with sponsorship from Representatives John Rose (R-Tenn.) and Ritchie Torres (D-N.Y.), along with Senators Bill Hagerty (R-Tenn.) and Jack Reed (D-R.I.).
The act is now headed to President Donald Trump for his signature and it is slated to take effect six months after enactment.
A similar bill (S. 1467) had already passed the Senate.
Brendan McKay, chief advocacy officer at the Broker Action Coalition, explained only one version would ultimately be signed — and introducing parallel bills in both chambers helped gain momentum.
A directive added to the House version by the Financial Services Committee requires the Comptroller General to study the impact of trigger leads sent by text message, with findings due within 12 months of enactment. McKay confirmed this provision was included in the final version headed to the president’s desk.
“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,” said Bob Broeksmit, Mortgage Bankers Association (MBA) president and CEO, in a statement. “It marks a major victory for borrowers and will create a more efficient, responsible and respectful home buying process.”
Broeksmit called the bill “ a long-overdue measure that will finally put an end to the abusive use of mortgage credit trigger leads.”
Meanwhile, the National Association of Mortgage Brokers (NAMB) stated the bill marks a major victory in the fight to protect consumers’ personal financial data during the home-buying process.
“Since 2018, NAMB has carried this torch, tirelessly championing this cause, even when others grew weary, and last evening our efforts proved successful,” said Jim Nabors, president of NAMB, in a statement. “This legislation represents a significant step toward a more respectful, secure and transparent mortgage experience for all Americans.”
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