Tennessee Lawmakers Drive Congressional Action to End Trigger Leads and Protect Homebuyers
By Colin Barrett
President/CEO, Tennessee Bankers Association
For years, mortgage applicants have been subjected to one of the most intrusive and confusing practices in lending: the sale of “trigger leads.” The moment a consumer applies for a home loan, credit bureaus sell their information to competing lenders. What follows is a barrage of unsolicited phone calls, text messages, and emails from lenders the consumer has never had a banking relationship with.
Credit bureaus have long defended the practice as “competition.” In reality, it is legalized harassment that provides the credit bureaus a way to line their pockets. Consumers are bombarded at a moment when they are already making one of the most stressful financial decisions of their lives. Worse, the practice has opened the door to confusion, fraud, and the misuse of personal information.
This past month, Congress finally put a stop to it. With overwhelming bipartisan support, lawmakers passed the Homebuyers Privacy Protection Act, and President Trump signed it into law. And it did not happen by accident—it happened because a group of Tennessee bankers went to Washington, made their case to Senator Hagerty and Congressman John Rose, and followed through over the last several years.
The significance of this win goes beyond the substance of the bill. Of course, it matters that homebuyers will no longer be subject to harassment when they apply for a mortgage and that they now have control over who contacts them and how their information is used. But what also matters is how it happened. It is a clear reminder that advocacy works. When we take the time to meet with lawmakers and make a principled case, we can shape the laws that govern our industry.
It is easy to assume decisions in Washington are out of our control. The truth is that decisions are made by those who show up. And in this case, Tennessee bankers showed up in force. As did our colleagues at the other state banking associations, ABA, and ICBA, who advocated regularly on this issue. They explained how trigger leads undermine consumer trust, how the practice puts our customers at risk, and how protecting homebuyers protects the integrity of the entire mortgage process. Washington heard them loud and clear.
The passage of the Homebuyers Privacy Protection Act is a victory for consumers, lenders who play by the rules, and everyone who believes financial markets should work for people—not against them. But most of all, it is a victory for engagement. Tennessee bankers proved what’s possible when we go to Washington with a unified voice.
This legislation proves that when we organize, advocate, and build relationships with our elected officials, we can deliver meaningful results for the people we serve.
As proud as I am that Tennessee led the charge on this issue, the celebration has come to an end as we continue to focus on urgent issues facing our industry—regulatory overreach, stablecoins, and protecting the traditional banking model. None of them will be won by sitting on the sidelines.