Trump signs the law that prohibits Trigger Leads
“This new law is a big win for mortgage lenders who will protect them against the barrage of unwanted phone calls, SMS Mortgage banking association (MBA), said in a statement. “It will create a more efficient, responsible and respectful home purchase process when it comes into effect on March 5, 2026.”
Broeksmit added that the MBA “will work with our members and federal agencies to guarantee a seamless transition in the next six months.”
The legislation prohibits companies from making credit offers, unless a consumer offers explicit permission, or the offer comes from its existing originator, service, bank or credit union. Companies must also be willing to expand a “bona fide” credit offer.
Although most trading groups applaud the law, some industry professionals are less enthusiastic about the opt-in-requirement for consumers.
Critics told Housing The measure could give Retail lenders a different way to add competitors to raise questions about whether the rule protects consumers or undermines competition.
Jim Nabors, president of the National Association of MortGage Brokers (Namb), the bill called a “victory” for American consumers.
“Consumers now have more control over the information they receive as part of the house -huising process, and they can now eliminate trigger lead abuse while retaining their use in appropriate limited circumstances.”
Others in the mortgage space expressed their gratitude for the end of a long legislation process.
“The BAC is proud to see that this fight is finally exceeding the finish line. This account shows what is possible when the industry sets aside differences and cooperates with a common goal,” said Brendan Mckay, Chief Advocacy Officer for the Broker Action Coalition (Bac).
Isaac Boltansky, head of public policy at Pennymacbelieves that the law produces both consumers and lenders positive change.
“By curbing offensive data practices while maintaining the responsible competition, this framework strengthens confidence in the mortgage process and creates a healthier, more sustainable market,” said Boltansky.
“We appreciate President Trump’s willingness to work with industry experts to tackle problems and implement practical, common sense protection for consumers,” said Craig Ungaro, Chief Operating Officer Anniemac Home Mortgage.
Note of the editors: This story was updated with comments from the Broker Action Coalition, Pennymac and Anniemac.
