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3w ago

Senate Approves Homebuyers Privacy Protection Act to Curb Mortgage ‘Trigger Leads’

The bipartisan measure amends the Fair Credit Reporting Act to restrict credit bureaus from selling consumer inquiries except under narrow conditions.

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Under bipartisan legislation, the U.S. Homebuyers Privacy Protection Act, or so-called trigger lead legislation, will bring to an end unwanted solicitation from lenders using borrowers’ information sold to them by credit agencies. (iStockphoto/Getty Images)

Overview

  • The Senate approved H.R. 2808 by voice vote over the weekend, sending the Homebuyers Privacy Protection Act to President Trump for signature.
  • President Trump is expected to sign the legislation imminently, and it will take effect 180 days after enactment.
  • The measure bars credit bureaus from selling “trigger leads” to third parties unless consumers consent to a firm offer or the buyer is the existing mortgage lender, servicer or holds a relevant banking relationship.
  • The Consumer Financial Protection Bureau retains its existing FCRA authority and has signaled it will prioritize enforcement against actual fraud and tangible harms in the mortgage market.
  • The bill drew bipartisan backing in Congress and endorsements from major industry and consumer groups such as America’s Credit Unions, the American Bankers Association and the Center for Responsible Lending.