If you’ve ever applied for a home loan or home equity line of credit, you probably know the drill: you give permission to run your credit, and suddenly your phone and inbox are flooded with calls, texts, and emails from lenders you’ve never heard of.
That’s because of a practice called “trigger leads”—when credit bureaus sell your application data (like name, credit score, and loan amount) to other lenders. It’s legal under the Fair Credit Reporting Act… until now.
The bipartisan Homebuyers Privacy Protection Act will soon ban credit bureaus from selling this information to just anyone. The bill has passed both the House and Senate and awaits the President’s signature. Once signed, it’s expected to take about six months before the new rules kick in.
How This Impacts You as a Homeowner
âś… Pros:
- More privacy: Your mortgage application won’t be an open invitation for dozens of cold calls.
- Less stress: No need to sift through a barrage of lender offers you never asked for.
- More control: You decide which lenders to approach and when.
⚠️ Cons & Loopholes:
- Still some exceptions: Your current lender, mortgage servicer, or bank/credit union can still reach out.
- Could limit competition: Some borrowers benefit from multiple offers—fewer incoming calls might mean less leverage when negotiating.
- Delayed start: The changes won’t take effect for roughly six months.
What Homeowners Should Do Now
- If you’re refinancing: Shop around yourself with at least 3 trusted lenders.
- If you’re buying: Get pre-approved early to lock in rates while they’re still relatively low.
- If you’re renting but planning to buy: This law could make the process smoother and less stressful in the future.
Bottom line: This law is a win for privacy—but smart homeowners will still actively compare lenders to get the best deal.
💡 Whether you’re buying, selling, refinancing, or renting, Boutique Realty can help you navigate the process with less stress and more confidence.
đź“ž Call us today or visit allensellsla.com to start planning your next move.