The Homebuyers Privacy Protection Act, intended to curb the use of trigger leads, appears for now to have met an abrupt end after being pulled from the Senate’s Fiscal Year 2025 National Defense Authorization Act (NDAA).
The NDAA, which specifies the annual budget of the U.S. Department of Defense, is authorized by Congress every year. Sen. Jack Reed, D-R.I., and Sen. Roger Wicker, R-Miss., included the Homebuyers Privacy Protection Act — which severely limits consumer reporting agencies from selling financial data to lenders when certain events are triggered (hence the term “trigger leads”) — in this year’s version, which hit Senate discussion this month.
However, after credit bureaus pushed for a toned-down version of the bill and the incoming shift in government coalesced during the election, the bill was dropped from the NDAA package, making it highly unlikely that any trigger lead legislation would pass this year.
“You’ve probably guessed it by now, but the Trigger Lead Bill is unlikely to pass this year,” wrote Katie Sweeney and Brendan McKay, co-founders of the Broker Action Coalition (BAC), in a letter to its advocates and partners. The BAC has campaigned extensively to get trigger lead legislation on the Congressional agenda, holding more than 250 meetings with lawmakers on the issue.
“While it is not fully dead yet, and work is still being done, it’s got a steep uphill climb if it’s going to happen before the end of the year,” they continued. “This bill, along with a slew of other provisions, were stripped out of the current version of the NDAA package. Theoretically it can get back in, and we’re going to work like hell to try and do just that, but we’re aware of the realities of the situation.”
The BAC highlighted the bill’s victories on its way to inclusion in the NDAA, including amassing 90 co-sponsors in the House and 43 in the Senate. Despite credit bureaus lobbying against the bill, the mortgage industry has largely mobilized behind curbing the use and abuse of trigger leads, and many within lending remain resolute in pushing for more stringent regulation.
“While our efforts proved successful up until this past Friday, sources close to the negotiations indicated several factors, such as outgoing House Financial Services Committee Chairman Patrick McHenry’s desire to provide zero relief to consumers and efforts undertaken by industry stakeholders who prematurely commented on said negotiations, ultimately eroded our quest to pass this critical legislation during the 118th Congress,” said a statement from the National Association of Mortgage Brokers. “Nevertheless, it is NAMB’s intention to immediately begin the work necessary to have trigger leads legislation reintroduced as soon as the 119th Congress begins its first session in January.”
“Any legislative compromise regarding trigger leads which allows texts, emails, phone calls, or any live offers to borrowers is unacceptable and will not end abusive trigger lead solicitations,” said Rob Zimmer, director of external affairs for the Community Home Lenders of America in November. “Without discernable action, consumers will continue to be harassed by automated solicitations that they do not want.”