The Homebuyers Privacy Protection Act (H.R. 2808), which would ban the use of mortgage trigger leads, passed by unanimous consent in the Senate on Aug. 2. The industry-supported bill will move on to the president’s desk to be signed into law.
The legislation seeks to prohibit credit reporting agencies from permitting third-party access to consumers’ credit information pertaining to a residential mortgage transaction unless the transaction includes a firm offer of credit or insurance with documentation verifying consumer consent.
Additionally, credit reporting agencies would only be allowed to provide consumer credit information if they can verify that the third party either originated a mortgage on behalf of the consumer, is a current mortgage loan servicer to the consumer or has a current specified banking relationship with the consumer.
The bill’s anticipated enactment represents the culmination of a half-decade of advocacy across multiple bipartisan legislative proposals aimed at eliminating the use of trigger leads from the real estate finance market.
“MBA celebrates the final passage of this important bill — a long-overdue measure that will finally put an end to the abusive use of mortgage credit trigger leads,” Mortgage Bankers Association President and CEO Bob Broeksmit said in a statement. “This new law will help protect consumers from the barrage of unwanted calls, texts, and emails they too often receive immediately after applying for a mortgage. It marks a major victory for borrowers and will create a more efficient, responsible and respectful homebuying process.”
On June 12, the legislation passed the House by voice vote with an amendment commissioning the Government Accountability Office to conduct a study of the value of trigger leads received via text message. The findings would need to be reported within one year of the bill’s enactment.
“Consumers looking to purchase a home deserve to have their privacy respected and their data secured,” America’s Credit Unions President and CEO Jim Nussle said in a press release. “This bill ensures that they are protected from the abusive use of trigger leads and preserves the positive relationship members want from their trusted credit unions. We call on President Trump to quickly sign this legislation into law and further protect consumers seeking their American Dream.”
The legislation is set to take effect 180 days after it is signed into law.