The U.S. House and Senate have passed a new bill, the Homebuyers Privacy Protection Act, that would make these unsolicited calls illegal. Once enacted, this landmark law will end the practice of selling mortgage trigger leads—when credit bureaus sell your information to other lenders after you apply for a mortgage, triggering unwanted calls, letters, and emails.
Prior to this law, credit bureaus could legally sell your information when credit was pulled during a mortgage, refinance, or home equity line of credit (HELOC) application. However, your information couldn’t be sold if you had completed a pre-screen opt-out.
Trigger leads were first introduced to help borrowers compare prices and promote healthy competition. A lender would buy a trigger lead because it indicated a borrower was interested in buying or refinancing a house. Trigger leads are also purchased by credit card, insurance, personal loan, and car loan providers.
But in many cases, trigger leads were misused. Borrowers didn’t appreciate receiving unwanted calls and emails. If your information was sold as a mortgage trigger lead, competing lenders could access your credit score, loan type, and even loan amount.
How Have Mortgage Trigger Leads Changed?
Starting about six months after it’s signed into law, the new federal legislation will stop credit bureaus from selling your mortgage information to competing lenders. This restricts unwanted calls when you’re buying or refinancing a home.
Here’s what the new law means for you:
- Your lender relationships matter now. Credit bureaus can only share your mortgage information with lenders you have a relationship with, like your bank or mortgage servicer. You’re still free to choose any lender for your transaction.
- Stricter rules on selling your info. When a lender pulls your credit (with your consent), credit bureaus can only sell that data in very specific situations—like when there’s a real credit offer during a purchase or refinance.
- You stay in control. The new law requires clear disclosures and puts your consent at the center of any information sharing.
- Finally, peace and quiet. This legislation is designed to stop those annoying waves of marketing calls and spam messages that used to flood your phone right after applying for a mortgage.
This change recognizes that applying for a mortgage is a more deliberate, complex decision, where a borrower benefits from a streamlined process rather than aggressive competition.
Questions? Reach out to your local Cornerstone loan officer.
Do You Still Need to Opt Out?
Yes. While this new law goes a long way toward protecting your privacy and cutting down spam offers, it won’t stop all unsolicited calls overnight. The new law also only covers mortgages, so you’ll still want to opt out to avoid trigger leads for other types of credit.
Trigger leads remain active for:
- Auto loans and vehicle financing
- Personal loans
- Credit cards
- Home equity loans and lines of credit
- Business credit applications
You can prevent credit offers after a credit inquiry is made by visiting OptOutPrescreen.com or calling 1-888-5-OPT-OUT. An opt-out takes roughly five days to go into effect.
Opting out helps reduce the amount of spam and harassment you receive for approximately five years. You also have the option to permanently take yourself off the list. A permanent opt-out request must be sent by mail. If you change your mind, you can use the site to opt back in again later.
When you opt out of becoming a trigger lead:
- You’ll be excluded from firm offer lists sold by the four Consumer Credit Reporting Companies (TransUnion, Experian, Innovis, and Equifax).
- You won’t receive as many unwanted credit offers by letter, phone, or email.
- You’ll have the assurance that your credit file is only reviewed by those you’ve granted permission to.
- Your credit score won’t be impacted. Neither will your ability to apply for credit and insurance.
Keep in mind that opting out isn’t a 100-percent guarantee. Though an opt-out request will remove you from firm offer lists within five days, you may still get offers from companies that have already received your information. You might also get offers from companies that don’t rely on Consumer Credit Reporting data.
To take it a step further:
- You can opt out of Direct Mail Association (DMA) lists, reducing the amount of junk mail you receive.
- Before applying for a mortgage, you can register your phone number at www.DoNotCall.gov.
Opting out of trigger lead and Do Not Call lists won’t limit soliciting from religious groups, alumni associations, politicians, charities, and local vendors. If you want to opt out of calls and mailers from these groups, you’ll need to contact them directly.
The bottom line: The new federal law is a major victory for mortgage applicants, but trigger leads will continue for other types of credit applications. If you want comprehensive protection from unwanted credit offers across all loan types, it’s important to opt out through OptOutPrescreen.com.
We’re Here to Make Your Life Easier
Whether it’s helping you opt out of unnecessary spam calls or working quickly and efficiently to ensure your loan closes on time: We’ve got your best interests at heart. If you’re ready to buy a house, your local Cornerstone loan officer can help you get started.
Sources deemed reliable but not guaranteed. For educational purposes only.