Homebuyers Privacy Protection Act
This bill restricts credit bureaus from selling your data to competing lenders whenever you apply for a home mortgage. Outside lenders will only be allowed to receive your credit information if you explicitly authorize it, or if that lender already holds or services an existing mortgage for you. It also requires a government study on the impact of mortgage solicitation text messages.
What this bill touches.
Who it helps · who it burdens.
Who it helps
- Mortgage applicants and consumersGains privacy protections against having their mortgage inquiries shared or sold to third-party lenders without their explicit authorization or an existing mortgage relationship (Sec. 2(a)).
- Current mortgage originators and servicersExempted from the requirement to obtain direct consumer authorization before receiving trigger leads for their existing mortgage customers, preserving their access to credit reports for current borrowers (Sec. 2(a)(4)(B)(ii)(II)).
Who it burdens
- Consumer reporting agencies (credit bureaus)Restricted from furnishing or selling consumer reports triggered by residential mortgage inquiries unless the recipient provides a firm offer of credit/insurance and has the consumer's direct authorization or is the consumer's current mortgage originator or servicer (Sec. 2(a)).
- Third-party mortgage lenders and lead buyersRestricted from buying or receiving mortgage inquiry trigger leads from credit reporting agencies unless they obtain the consumer's explicit consent or already service or originated the consumer's existing mortgage (Sec. 2(a)).
- Comptroller General of the United States (GAO)Required to conduct a study on the value and impact of text message trigger leads with input from stakeholders and submit a report to Congress within 12 months of enactment (Sec. 4).
The provisions, in plain language.
Prohibits credit reporting agencies, starting 180 days after enactment, from sharing or selling consumer reports generated in response to a residential mortgage inquiry, unless the recipient provides a firm offer of credit or insurance and either has the consumer's direct permission or is the originator or servicer of their existing mortgage.
Directs the Comptroller General to study and submit a report to Congress within one year on the value and impact of mortgage inquiry trigger leads delivered by text message, incorporating input from consumers, lenders, credit bureaus, and regulators.