Mortgage Bankers Association

Trump Signs Bill into Law, Ending “Trigger ⁤Lead” Practice in Mortgage Industry

WASHINGTON, D.C. – President Trump has signed legislation into⁢ law that will substantially alter how⁤ mortgage lenders generate leads, effectively ending the controversial practice of “trigger​ leads.”‍ The new law, going into effect March 5, 2026, requires explicit consumer consent‌ before companies can offer credit, limiting ⁢solicitations to ⁤those initiated by a consumer’s existing ⁣lender, servicer, bank, or ‌credit union.The “trigger lead” system,which has drawn criticism for inundating mortgage applicants with unsolicited calls,texts,and emails promptly after submitting financial information,has long been​ a point of contention within the mortgage industry. The new law aims to create a more consumer-friendly and responsible home buying experience.

“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 frequently ⁤enough received immediately after applying for a mortgage,” said Bob Broeksmit, ⁤president ‍and CEO of the Mortgage Bankers Association (MBA), in a statement. “it will create a more efficient,responsible,and‌ respectful home buying process.” The MBA plans to‌ work with its members and federal agencies to ensure a smooth transition over the next six months.The legislation stipulates that any credit offers extended must be “bona fide.” ⁣While largely welcomed by industry trade groups, the opt-in requirement has sparked some debate. Some industry professionals‍ worry the rule could disproportionately benefit larger retail‌ lenders, potentially limiting competition.

“Consumers now have more control ​over the information they receive as part of⁤ the homebuying process, and they can now eliminate ⁤trigger⁢ lead abuses while preserving their use in appropriately limited circumstances,” stated Jim Nabors, president of ‍the National Association of Mortgage Brokers⁣ (NAMB), calling the bill a⁢ “victory” for American consumers.Brendan McKay, chief advocacy officer for the Broker Action Coalition (BAC), lauded the collaborative effort⁣ that lead to the bill’s passage.”The BAC ‍is proud to see this fight finally cross the finish line. This bill shows what’s possible when the industry puts differences ⁤aside and works together toward a⁣ common goal,” ​he said.

Industry leaders also expressed optimism about the law’s broader impact. Isaac Boltansky, head of public policy at Pennymac, ​believes the change will benefit both consumers⁤ and lenders. “By curbing abusive data practices while preserving responsible competition, this framework strengthens trust in the mortgage process and creates a healthier, more sustainable marketplace,” Boltansky explained.

Craig Ungaro, chief operating officer at AnnieMac home Mortgage, acknowledged the collaborative spirit⁢ that ⁣brought the legislation to fruition. “We ‍appreciate President Trump’s willingness to collaborate ⁣with industry experts to ‍tackle ⁢problems and implement practical, ⁣common-sense protections for consumers,” Ungaro said.