WASHINGTON–The Senate has passed legislation that bans so-called “trigger leads” and sent it to the president for signature.
The Homebuyers Privacy Protection Act, which has the support of credit unions, bans the practice of mortgage lenders who use consumer credit information following a loan or credit card application who then target consumers with unsolicited credit offers.
The Specifics
Specifically, America’s Credit Unions noted the new 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
- Requires the third party to provide documentation verifying consumer consent
- Requires the third party to have originated a mortgage on behalf of the consumer, be a current mortgage loan servicer to the consumer, or have a current specified banking relationship with the consumer.
‘Privacy Should be Respected’
“America’s Credit Unions thanks our Senate and House partners for passing the Homebuyers Privacy Protection Act,” America’s Credit Unions President and CEO Jim Nussle said in a statement. “Consumers looking to purchase a home deserve to have their privacy respected and their data secured. 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.”
