New Law Targets Rising Homebuyer Headache

New Legislation Aims to Reduce Mortgage-Related Solicitations

A new piece of federal legislation is set to become law and will offer relief to homebuyers who have long struggled with an overwhelming influx of unsolicited calls and messages. The Homebuyers Privacy Protection Act, which has passed both the House and Senate, is awaiting President Trump's signature. Once signed, it will significantly reduce the use of "trigger leads," a practice that has created a major nuisance for those applying for mortgages.

When a buyer applies for a mortgage, their credit is checked by a professional. This action often triggers a flood of communications from mortgage lenders and intermediaries, as credit agencies and third-party marketing firms share this information. These entities then sell the opportunity to reach out to the buyer, resulting in a deluge of unwanted phone calls and texts.

This issue has grown more severe in recent years. Prospective homebuyers are not only dealing with high mortgage rates but also with an overwhelming number of unsolicited offers. According to Peter Idziak, a senior associate at Polunsky Beitel Green, a law firm representing residential mortgage lenders, the abusive use of trigger leads has left consumers confused and frustrated. He noted that some individuals have received over 100 messages within a single day after applying for a mortgage. Others have reported calls from people who falsely claimed to be representing their targeted lender, while others have been offered rates and fees they do not qualify for.

The act’s passage through the Senate without objection and the House with unanimous support highlights the severity of the problem. However, the legislation does include certain exceptions. For instance, third parties can contact consumers to provide a firm offer of credit, provided the consumer already has a bank account or current mortgage with that entity.

The law is expected to take effect 180 days after being signed by President Trump. Additionally, the Government Accountability Office will have one year to evaluate the value of trigger leads received via text message.

The Mortgage Bankers Association (MBA) has praised the legislation, calling it a long-overdue measure that will end what it describes as abusive practices. MBA CEO Bob Broeksmit stated that the new law will protect consumers from the constant barrage of unwanted communications they receive after applying for a mortgage. He emphasized that the law marks a significant victory for borrowers and will create a more efficient, responsible, and respectful home buying process.

Experts estimate that the legislation could reduce millions of unwanted calls and texts directed at consumers. Real estate data firm Attom reported that 1.28 million mortgages were secured on residential property in the first quarter of 2025, a significant drop from the peak in 2021. Despite this decline, the mortgage process—along with the associated trigger leads—remains a challenge for many buyers.

The housing market in the first half of 2025 has seen shifts, including increased inventory and price cuts in previously hot markets. A generational divide has also emerged, with about 43% of baby boomers stating they will never sell their homes, the highest among any generation. According to a survey by Redfin Corp., the main reason cited for staying put is that their homes are almost or completely paid off, while others simply enjoy their current location.

An earlier analysis by Redfin showed that just 25 out of every 1,000 U.S. homes changed hands in the first eight months of 2024, the lowest rate in decades. With home prices up about 40% since the start of the pandemic and current mortgage rates far higher than in 2019, moving is less appealing for those who don’t need to relocate.

According to a study by Construction Coverage, the share of homes owned by Americans older than 55 years grew from 44.3% in 2008 to 54% in 2023. Meanwhile, homeownership among those aged 35 to 54 declined from 42.3% in 2008 to 34% in 2023. Baby boomers, who were between the ages of 60 and 78 in 2024, make up 20% of the population but account for more than 37% of homeowners nationwide.

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