OBL-Backed Trigger Leads Bill Signed into Law

09/10/25

Ohio bankers have long understood the frustration their customers feel after applying for a mortgage, only to be bombarded with phone calls, emails, and text messages from unfamiliar lenders. For many borrowers, it creates the false impression that their trusted bank sold their personal information, undermining the very trust at the core of the banking relationship. That frustration will soon come to an end.

Congress has passed the Homebuyers Privacy Protection Act (H.R. 2808)-a bipartisan measure that represents a significant win for consumer privacy and for the banks that serve them. The House approved the measure earlier this summer, and in early August, the Senate followed suit by passing the House version and sending it on to the President for signature. Signed into law on September 8, the new protections will take effect in six months.

At the heart of the legislation is a simple but powerful change: it will sharply restrict the use of so-called "trigger leads." For years, credit reporting agencies have been able to sell the fact that a consumer applied for a mortgage to outside lenders, who would then flood the consumer with solicitations. Under the new law, that practice will be limited to only a narrow set of circumstances. A consumer's information may only be shared if the borrower has expressly authorized it, or if the party receiving the lead already has a meaningful relationship with the borrower-such as being the bank that originated or services the loan, or a financial institution where the consumer already holds an account.

This new standard strikes at the core of what has made trigger leads so problematic: the ability of unrelated third parties to swoop in at the most vulnerable stage of the homebuying process. By cutting off that avenue, the law ensures that Ohioans will no longer be harassed with unwanted offers the moment they begin working with a trusted lender. It also clears up the damaging misconception that their banks were responsible for selling customers' information in the first place.

The legislation goes a step further by directing the Government Accountability Office to conduct a study within the first year of enactment on the use of text-based trigger leads. That research will help policymakers and regulators better understand how technology is shaping consumer experiences-and where further safeguards may be needed.

For Ohio banks, this development represents more than just a policy win. It's a reaffirmation of the principle that the banking relationship is built on trust and respect. By protecting borrowers from deceptive and invasive practices, Congress has reinforced the role of banks as consumer advocates and reliable partners in one of life's biggest financial decisions.

As the effective date approaches, banks will want to communicate to customers that this victory belongs to them too. Homebuyers can now move through the mortgage process with greater confidence, knowing that their information will stay where it belongs-secure, private, and under their control.

This victory did not happen overnight. The Ohio Bankers League has spent years pressing lawmakers in Washington to rein in abusive trigger leads, consistently elevating the voices of our member banks who see firsthand the frustration these practices cause their customers. From countless meetings on Capitol Hill to coordinated letters and testimony, Ohio bankers have been instrumental in pushing this issue forward and ensuring that policymakers understood both the consumer harm and the damage to the banker-customer relationship. The passage of this bill is a testament to that sustained effort, and OBL extends its deepest thanks to the bankers across Ohio who lent their time, expertise, and credibility to help bring this legislation across the finish line.