HR2808-119

What This Bill Does

The Homebuyers Privacy Protection Act amends the Fair Credit Reporting Act to limit mortgage-trigger leads. Consumer reporting agencies may not furnish a consumer report to a third party based on a residential mortgage inquiry unless the consumer authorized the report or the third party is the consumer's current mortgage servicer or a related institution with an existing relationship. The bill takes effect 180 days after enactment and requires a GAO study on text-message trigger leads.

Who Benefits and How

Homebuyers and mortgage applicants benefit because their credit inquiry for a home loan is less likely to trigger unsolicited sales contacts from unrelated lenders. Existing mortgage servicers, insured depository institutions, credit unions, and banks with customer relationships benefit because the bill preserves access tied to authorization or current servicing relationships.

Consumer privacy advocates benefit from a narrower prescreening pathway. The Government Accountability Office and state regulatory agencies gain a formal study process to evaluate text-message trigger leads.

Who Bears the Burden and How

Consumer reporting agencies must verify consumer authorization or an existing servicer relationship before furnishing covered reports. Third-party mortgage lenders using trigger leads and mortgage lead-generation companies lose access to some prescreened mortgage-applicant data. Mortgage lenders and servicers must adjust compliance processes during the 180-day implementation period.

Key Provisions

• Restricts mortgage-trigger consumer reports under Fair Credit Reporting Act section 604(c).
• Allows reports when the consumer authorizes them or when the recipient is the current mortgage servicer or related institution.
• Defines covered terms including credit union, insured depository institution, and residential mortgage loan.
• Delays effectiveness for 180 days after enactment.
• Requires GAO to study the value of trigger leads received by text message with input from regulators, lenders, depository institutions, consumer reporting agencies, and consumers.