On September 5, President Trump signed the Homebuyers Privacy Protection Act (HPPA) into law, amending the FCRA to restrict the use of “trigger leads” in residential mortgage lending.
As previously covered by InfoBytes, the law prohibits consumer reporting agencies from selling or furnishing trigger leads except in limited circumstances. Trigger leads are information indicating a consumer has applied for a residential mortgage loan. According to the HPPA, credit bureaus may only furnish a trigger lead if: (i) the transaction is a firm offer of credit or insurance; and (ii) the recipient either certifies that it has the consumer’s authorization, has originated or currently services the consumer’s mortgage, holds a deposit account for the consumer, or is an insured depository institution or credit union with an existing account relationship. The law also permits trigger leads if the consumer affirmatively opts in to receive such offers. The HPPA also directs the comptroller general to conduct a study on the value of trigger leads received by text message, with a report to Congress due in 12 months.
The law will take effect 180 days after the bill’s enactment on September 5.
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