Safeguarding Borrower Data

Congress delivered a win for consumers and community banks in September with the passage of the Homebuyers Privacy Protection Act (HPPA), a bipartisan law that reins in the sale of “trigger leads.” These leads, which occur when credit reporting agencies sell a consumer’s information immediately after they apply for a residential mortgage, often unleash a wave of unwanted calls and solicitations from competing lenders. 

HPPA restricts when and how consumer reporting agencies can share this data, reducing confusion and frustration for prospective homebuyers. The law also helps community banks reinforce the trust they’ve built with customers. 

By limiting when reports can be shared with third parties, the law levels the playing field for relationship lenders and protects borrowers at a critical stage. Its passage reflects ICBA’s strong advocacy through testimony, letters of support and the Repair, Reform and Thrive plan to protect consumers and reinforce the role of community banks.

Protecting the lender–borrower relationship

The movement to stop trigger leads found a strong champion in Rep. John Rose (R-Tenn.) after community bankers in his state raised concerns. When borrowers applied for a mortgage, the resulting credit pull triggered a flood of unsolicited offers, some of which bordered on scams. Many consumers assumed their community bank had sold their information, creating a reputational risk, when in fact it was the credit reporting agencies selling the data.

Tennessee community banks flagged the problem, brought it to the attention of the Tennessee Bankers Association (TBA) and pushed for action. That grassroots advocacy became the spark that led to the HPPA.

I experienced the problem with trigger leads firsthand when I bought a home last year. During the mortgage process, I shared a lot of personal information with my lender and trusted it would stay between us. But as soon as my credit was pulled, I was hit with a flood of emails, texts and mail solicitations.

In that moment, it felt like the lender had sold my data. That’s a natural conclusion for many borrowers who assume their bank has broken their trust. In reality, it is the credit reporting agencies selling that information. Some of the solicitations even looked official, making it easy to believe they came from the bank itself.

A bipartisan effort to stop trigger leads

Working with lawmakers on both sides of the aisle, ICBA helped to build the bipartisan consensus that made HPPA possible. The bill was introduced in the U.S. House of Representatives in April, and just two months later, it was marked up by the Financial Services Committee and passed 46–0. By the end of June, HPPA cleared the House by voice vote and, soon after, sailed through the Senate by unanimous consent.

This success didn’t happen by accident. HPPA was part of ICBA’s Repair, Reform and Thrive agenda, included in our open letter to the 119th Congress and reinforced through our advocacy during the year. Community bankers carried the message directly during our Capital Summit, where they took lobby cards to Capitol Hill to advocate for the new legislation. ICBA stood behind those efforts with letters of support, testimony from president and CEO Rebeca Romero Rainey, and continued advocacy as HPPA advanced in both chambers.

This win is proof that meaningful legislation can move forward when community bankers and ICBA work together. By pairing grassroots action with a clear policy agenda, we showed that bipartisanship is possible and that our industry can shape laws that protect customers and strengthen trust in community banking.

Under HPPA, only lenders with an existing relationship can make solicitations. We’re happy to see that the bill keeps the borrower–lender relationship intact while also making the homebuying process more transparent and less stressful.

What’s next?

The true test of HPPA will come as its provisions take effect in March 2026. Once the law is in force, borrowers will see a clear change in their experience. When they share sensitive financial information with a lender, for example, their data will no longer be immediately sold and pushed into the marketplace. That shift will give consumers more confidence in the process and help ensure the borrower–lender relationship stays strong throughout the entire home purchase.

What used to be a moment of stress for borrowers—when those credit checks triggered a flood of spam—will now be a smoother experience. HPPA shuts down the practice of trigger leads, letting homebuyers focus on their relationship with the lender they chose. For ICBA members, it means protecting hard-earned trust and keeping the focus where it belongs: on serving their communities.

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