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.