On March 17, the Governor of Idaho signed into law HB 149 (the “Act”) enacting a new section titled “Consumer Privacy In Mortgage Applications” to the Idaho Residential Mortgage Practices Act. The Act addresses consumer privacy matters related to mortgage applications. The Act defines a “mortgage trigger lead” as one that is derived from a credit inquiry made with a consumer reporting agency in response to an application for credit, as well as outlines prohibited practices related to soliciting consumers for residential mortgage loans based on such leads. These prohibited practices are violations of the Idaho Consumer Protection Act.
Those soliciting through mortgage trigger leads must clearly disclose their lack of affiliation with the lender or broker to whom the consumer initially applied and must inform consumers that their personal information was purchased from a consumer reporting agency (and without the lender or broker’s knowledge or permission). The section also mandates compliance with the FCRA’s prescreening solicitation requirements, including making a firm offer of credit.
The Act prohibits using mortgage trigger leads to solicit consumers who have opted out of prescreened offers or to contact those on federal or state “do-not-call” lists. The Act will take effect on July 1.
