On March 13, 2025, Utah Governor Spencer J. Cox signed House Bill 99 (HB 99) into law, marking a significant update to the Utah Residential Mortgage Practices and Licensing Act. This legislation, effective May 1, 2025, targets the use of prescreened “trigger lead” information by mortgage lenders and brokers. But what exactly are trigger leads, why do they pose a problem, and what does HB 99 require of those who wish to keep using them? Let’s break it down.

What Are Trigger Leads?

Trigger leads are a byproduct of the mortgage application process. When a consumer applies for a mortgage or has their credit pulled by a lender, credit bureaus like Equifax, Experian, or TransUnion are notified. These bureaus then generate “trigger leads”—lists of consumers actively seeking credit—and sell them to other lenders or brokers. Almost instantly, these companies can contact the consumer with competing offers, often within minutes of the initial application.

At first glance, this might sound like a win for competition, giving borrowers more options. But in practice, it’s not always so consumer-friendly.

Why Are Trigger Leads a Problem?

While trigger leads can increase competition, they often lead to a barrage of unsolicited calls, texts, and emails—sometimes dozens within a short period. For consumers, this can feel invasive and overwhelming, especially during an already stressful process like buying a home. Worse, some recipients report aggressive sales tactics or even scams disguised as legitimate offers.

Beyond the annoyance factor, trigger leads raise privacy concerns. Consumers don’t explicitly consent to having their information shared with multiple parties just because they applied for a loan. The fact that their personal financial details are being sold and acted upon without their knowledge erodes trust in the mortgage industry. Additionally, not all companies purchasing trigger leads are reputable, increasing the risk of fraud or predatory lending practices.

Utah lawmakers recognized these issues and, with HB 99, aimed to protect consumers while still allowing regulated use of trigger leads under stricter conditions.

What Does HB 99 Require?

HB 99 doesn’t outright ban trigger leads but imposes clear guardrails for lenders and brokers who want to use them in Utah. Starting May 1, 2025, here’s what the law mandates:

1. Disclosure of Source: Anyone contacting a consumer based on a trigger lead must disclose that the contact stems from prescreened credit information obtained from a consumer reporting agency. This transparency ensures borrowers understand why they’re being contacted and by whom.
2. Firm Offer of Credit: Contacts must include a “firm offer of credit”—a concrete, actionable loan offer with specific terms (like interest rates or loan amounts) that the lender is prepared to honor if the consumer qualifies. This prevents vague or misleading pitches designed just to hook consumers.
3. Opt-Out Notice: Every communication must inform consumers of their right to opt out of future prescreened offers by registering with the national credit bureaus’ opt-out system (e.g., via www.optoutprescreen.com). This empowers borrowers to stop the flood of calls if they choose.
4. Licensing Requirement: Only individuals or entities licensed under Utah’s Residential Mortgage Practices and Licensing Act—or exempt from its licensing requirements—can use trigger leads to solicit consumers. This ensures that only legitimate, regulated players can participate, reducing the risk of scams.
5. Penalties for Non-Compliance: Violators face enforcement actions by the Utah Department of Commerce, including potential fines or license revocation. This adds teeth to the law, discouraging shady practices.

Why This Matters

HB 99 strikes a balance between consumer protection and industry flexibility. By requiring transparency, accountability, and respect for borrower autonomy, Utah is setting a precedent for how states can address trigger lead concerns without stifling competition entirely. For consumers, this means fewer unwanted calls and more control over their personal information. For ethical lenders and brokers, it’s an opportunity to continue using trigger leads responsibly while weeding out bad actors.

What’s Next?

As the May 1, 2025, effective date approaches, lenders and brokers operating in Utah will need to update their practices to comply with HB 99. Consumers, meanwhile, can look forward to a less chaotic mortgage shopping experience—and if they still get overwhelmed, they’ll have a clearer path to opt out.

Have you ever been bombarded by calls after applying for a loan? What do you think of Utah’s approach? Let me know, I’d love to hear your thoughts!