The Trigger Leads Ban Is Here—Here’s What It Means for Lenders and How to Stay Ahead

The Trigger Leads Ban: What You Need to Know

Federal legislation banning traditional mortgage trigger leads has officially passed the Senate and is expected to become law soon. This marks a major shift in the way mortgage professionals compete for borrowers.
For years, trigger leads were a staple: when a borrower applied for a mortgage with one lender, dozens of others were instantly notified, sparking a flood of competing calls. With the new trigger leads ban, that noisy (and often frustrating) process is going away.

The good news? For MonitorBase customers, almost nothing changes—and in fact, this is a moment of opportunity.

Only One MonitorBase Alert Is Affected

The new law impacts only MonitorBase Inquiry Alerts (alerts that notify you when a consumer applies for a mortgage elsewhere). But even these will continue in certain scenarios, including when:

• The borrower has given explicit consent to be monitored
• Your company originated the borrower’s current mortgage loan
• Your company is the current servicer of the mortgage
• Your company is a bank or credit union with an active account relationship

That means if you’re already working with MonitorBase, you’re still covered in most cases. And thanks to our integration with MMI, origination data is validated—so you stay fully compliant while retaining the power of these alerts.

What’s Not Changing

All other MonitorBase alerts remain completely unaffected by the trigger leads ban, including:

• Listing Alerts – Know when a past client lists their home for sale
• Equity Alerts – Identify borrowers with enough equity for a refi, cash-out, or MI removal
• Migration (Credit Improvement) Alerts – Spot borrowers improving their credit and ready to qualify
• Predictive Alerts – Identify borrowers likely to be in the market before they apply

In fact, this is the perfect time to double down on MonitorBase's Predictive Alerts. Our data shows that 70% of borrowers who trigger an Inquiry Alert also triggered a Predictive Alert within the prior 90 days. That means you’re already getting most of these opportunities first—before competitors ever knew.

Why This Change Works in Your Favor

Far from being a setback, the trigger leads ban creates clear advantages for lenders using MonitorBase:

• Less competition – Inquiry Alerts will go to far fewer lenders, giving you a higher chance of making contact.
• Earlier engagement – Predictive and Listing Alerts notify you before the credit pull, so you can connect sooner.
• Stronger retention – Banks and credit unions retain full monitoring rights, often with alerts that would previously go to dozens of competitors.
• More precision – With MMI data validation, your monitoring is both targeted and compliant.

Next Steps for Lenders

The law will likely take effect in the next six months, following rulemaking. Here’s how to stay ahead:

• Maximize Predictive Alerts – Don’t wait for an application; engage borrowers earlier.
• Update disclosure language – Add consent wording so you retain monitoring rights.
• Leverage MMI data validation – Confirm you originated the borrower’s current loan and maintain compliance.

Why Choose MonitorBase Now

With the noise of trigger leads fading, precision matters more than ever. MonitorBase is built for this moment. We deliver predictive, compliant, borrower monitoring solutions that:

• Surface opportunities before competitors
• Strengthen borrower retention and loyalty
• Help you win more deals with less wasted effort
• Keep you fully compliant with the changing regulatory landscape

If you’re not yet a MonitorBase customer, now is the time. The trigger leads ban levels the playing field—MonitorBase gives you the tools to win with less noise, more precision, and complete compliance.

👉 Ready to see how MonitorBase keeps you ahead in the post-trigger-leads world? Request a demo today.