Trump Signs Bill into Law, Ending “Trigger โคLead” Practice in Mortgage Industry
WASHINGTON, D.C. – President Trump has signed legislation intoโข law that will substantially alter howโค mortgage lenders generate leads, effectively ending the controversial practice of “triggerโ leads.”โ The new law, going into effect March 5, 2026, requires explicit consumer consentโ before companies can offer credit, limiting โขsolicitations to โคthose initiated by a consumer’s existing โฃlender, servicer, bank, or โcredit 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 beenโ 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 โis a major victory for mortgage borrowers that โคwill protect them from the barrage of unwanted calls, texts and emails they too frequently โคenough received immediately after applying for a mortgage,” said Bob Broeksmit, โคpresident โand CEO of the Mortgage Bankers Association (MBA), in a statement. “it will create a more efficient,responsible,andโ respectful home buying process.” The MBA plans toโ 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.” โฃWhile largely welcomed by industry trade groups, the opt-in requirement has sparked some debate. Some industry professionalsโ worry the rule could disproportionately benefit larger retailโ lenders, potentially limiting competition.
“Consumers now have more control โover the information they receive as part ofโค the homebuying process, and they can now eliminate โคtriggerโข lead abuses while preserving their use in appropriately limited circumstances,” stated Jim Nabors, president of โthe National Association of Mortgage Brokersโฃ (NAMB), calling the bill aโข “victory” for American consumers.Brendan McKay, chief advocacy officer for the Broker Action Coalition (BAC), lauded the collaborative effortโฃ that lead to the bill’s passage.”The BAC โis proud to see this fight finally cross the finish line. This bill shows what’s possible when the industry puts differences โคaside and works together toward aโฃ common goal,” โhe said.
Industry leaders also expressed optimism about the law’s broader impact. Isaac Boltansky, head of public policy at Pennymac, โbelieves the change will benefit both consumersโค 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 spiritโข that โฃbrought the legislation to fruition. “We โappreciate President Trump’s willingness to collaborate โฃwith industry experts to โtackle โขproblems and implement practical, โฃcommon-sense protections for consumers,” Ungaro said.