When a homebuyer applies for a mortgage, lenders pull their credit report — and credit bureaus currently sell that inquiry as a 'trigger lead' to competing companies, who then contact the applicant with rival offers the buyer never requested. Under this law, credit bureaus are barred from selling a mortgage applicant's credit inquiry to any third party unless the consumer explicitly authorized it, or the third party is the consumer's existing lender, loan servicer, or a bank that holds a current account for that consumer. The restriction applies to all consumer reporting agencies and takes effect 180 days after enactment. The Government Accountability Office must also study the use of text-message trigger leads and report findings to Congress within one year.
Average Household Impact
- homebuyer protection from unsolicited competing mortgage offers — bars trigger lead sales to unauthorized third parties
Transparency & Accountability
- GAO oversight of text-message trigger lead practices — requires independent study and report to Congress within 12 months
Congressional Summary
Homebuyers Privacy Protection ActThis act limits the circumstances in which credit reporting agencies may provide consumer credit reports to third parties in connection with residential mortgage transactions. Specifically, the act prohibits a credit reporting agency from providing a consumer's credit report to a third party in connection with a residential mortgage transaction unless the transaction consists of a firm offer of credit or insurance and (1) the third party provides documentation certifying that it has the consumer's consent; or (2) the third party has originated a mortgage on behalf of the consumer, is a current mortgage loan servicer to the consumer, or has a current specified banking relationship with the consumer.These provisions take effect 180 days after enactment.The Government Accountability Office must study and report on the value of trigger leads (a marketing tactic facilitated by credit reporting agencies that may result in unsolicited credit offers to a consumer after a consumer applies for a separate type of credit) received by text message.
Legislative Subjects
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Public Law
- Action Date
- 2025-09-05
- Date Added
- 2026-06-24
- Source
- Congress.gov →
Like reading a bill in plain English?
We're building an app that does this for every bill in Congress and lets you tell your reps how you want them to vote. We're a small team getting ready to launch, and we're trying to show investors that real people want this. Be one of them. Help us get it built. Leave your email and we'll tell you the moment the app is ready.