Senate clears credit union-backed bill to ban abusive mortgage trigger leads

The Senate passed the credit union-supported Homebuyers Privacy Protection Act (H.R. 2808) by unanimous consent Saturday, sending the bill to the president’s desk. The House passed the bill last month, which would curtail the abuse of mortgage trigger leads by limiting who can access the information. 

“America's Credit Unions thanks our Senate and House partners for passing the Homebuyers Privacy Protection Act. Consumers looking to purchase a home deserve to have their privacy respected and their data secured,” said America’s Credit Unions President/CEO Jim Nussle. “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.”

Specifically, the bill prohibits a credit reporting agency from providing a consumer's credit report to a third party in connection with a residential mortgage transaction unless the transaction consists of a firm offer of credit or insurance and:

• The third party provides documentation verifying consumer consent; or
• The third party has 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.

These provisions will take effect 180 days after the bill is signed into law.