New law aims to stamp out one growing headache for homebuyers

By Andy Medici

Federal legislation that's set to become law is expected to provide relief to prospective homebuyers from what's become a major procedural headache.

The Homebuyers Privacy Protection Act, which has passed both the House and Senate and is awaiting President Trump's signature, would curb the use of so-called "trigger leads," thereby cutting back on what is often a flood of phone calls and texts buyers experience when they apply for a mortgage.

When a buyer applies for a mortgage, a professional runs a check on that person's credit. Credit agencies — and often third-party marketing firms — then alert other mortgage lenders and intermediaries that the person is looking for a mortgage, essentially selling them the opportunity to reach out to the buyer. 

The trigger-lead practice has become a bigger problem in recent years. Buyers have become inundated with unsolicited calls and offers of mortgages, leaving them to contend with much more than decade-high mortgage rates that have only recently begun to fall when they apply for a mortgage.

"Over the past several years, the abusive use of trigger leads has flooded consumers applying for a home loan with unwanted, often deceptive calls and texts that confuse and frustrate borrowers," said Peter Idziak, a senior associate at Polunsky Beitel Green, a law firm for residential mortgage lenders. "Unfortunately, any hypothetical benefit a consumer might obtain from an unsolicited offer of credit has been drowned out by the volume and nature of these unwanted solicitations."

Idziak said some consumers have reported more than 100 messages within a day of applying for a mortgage. Others have reported receiving calls from individuals who implied they were calling on behalf of the prospective buyer's targeted lender. Still others have said they've been offered rates and fees for which they would not actually qualify.

"The fact that the act passed the Senate unanimously and without objection in the House underscores how pervasive and problematic this issue has become," Idziak said.

The legislation does provide for some exceptions, Idziak said.

For example, it allows third parties to contact a consumer to provide a firm offer of credit, but only under certain circumstances — like if the consumer already had a bank account or current mortgage with that party, Idziak said.

The legislation is set to take effect 180 days after being signed by President Trump. The Government Accountability Office has one year to provide a report on the value of trigger leads received by text message.

The Mortgage Bankers Association also applauded the passage of the legislation, which it called "a long-overdue measure" that would put an end to what it said were abusive trigger leads. 

“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. It marks a major victory for borrowers and will create a more efficient, responsible and respectful home buying process,” said MBA CEO Bob Broeksmit in a statement.

Potential impact of the legislation

The new legislation is expected to cut down on millions of unwanted calls and texts going to consumers. There are millions of new mortgages every year, according to real estate data firm Attom, which found 1.28 million mortgages were secured on residential property in the first quarter of 2025. That's down about 70% since the red-hot real estate market of 2021.

Still, the mortgage process — and the trigger leads that have come with it — is just one aspect of what's been a shifting housing market in the first half of 2025 that's featured increasing inventory and price cuts in a number of once-hot markets. A generational divide also has developed, with about 43% of baby boomers saying they will never sell their home, the highest of any generational group, according to a survey of U.S. residents ages 18 to 65 by real estate firm Redfin Corp. (Nasdaq: RDFN). The biggest single reason cited for staying in place is that their home is almost or completely paid off, while others say they like where they live.

An earlier recent Redfin analysis showed that just 25 out of every 1,000 U.S. homes changed hands in the first eight months of 2024, the lowest mark in decades. With home prices up about 40% since the start of the pandemic, and current mortgage rates far higher than they were in 2019, moving isn’t as attractive to people who don’t have to relocate.

While it's typical for older Americans to occupy a larger share of homeownership, the share of homes owned by Americans older than 55 years grew from 44.3% in 2008 to 54% in 2023, according to a study by Construction Coverage. Meanwhile, Americans ages 35 to 54 saw a decline in homeownership, with their share dropping from 42.3% in 2008 to 34% in 2023.

Baby boomers specifically, who were between the ages of 60 and 78 in 2024, account for 20% of the population but make up more than 37% of homeowners nationwide. 

Final Thoughts:
The Homebuyers Privacy Protection Act aims to put an end to the overwhelming wave of calls, texts, and emails that flood buyers after applying for a mortgage. By limiting the abusive use of trigger leads, the law should create a more respectful and less stressful homebuying process. While exceptions remain for existing financial relationships, the legislation represents a rare bipartisan win for consumer privacy in an already challenging housing market.