On June 12, the U.S. Senate passed S. 1467, the Homebuyers Privacy Protection Act, which would amend Section 604(c) of the FCRA by adding new limitations on prescreening reports. Under the proposed amendment, when a person requests a consumer report in connection with a credit transaction involving a residential mortgage loan, the consumer reporting agency may not furnish a consumer report to another person unless the transaction is a firm offer of credit or insurance, and the recipient either has the consumer’s authorization, has originated or is the servicer of the consumer’s current residential mortgage loan, or is an insured depository institution or credit union holding a current account for the consumer. The act is now headed to the House. If enacted into law, the act would take effect 180 days after enactment.
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