Homebuyers Privacy Protection Act

The Homebuyers Privacy Protection Act establishes new privacy protections for consumers applying for residential mortgages. The law limits when credit reporting agencies can share a consumer's credit report with third parties in connection with mortgage transactions. Previously, credit reports could be shared more broadly, but this law creates stricter requirements for such disclosures.

Under this law, credit reporting agencies may only provide a consumer's credit report to a third party in a residential mortgage transaction in two situations. First, the third party must provide written documentation proving it has obtained the consumer's consent. Second, the third party must have an established business relationship with the consumer, such as being the mortgage originator, the current mortgage loan servicer, or having a current specified banking relationship.