Homebuyers Privacy Protection Act
Summary
The Homebuyers Privacy Protection Act proposes to limit the ability of credit reporting agencies to sell 'trigger leads' to third parties. Currently, when a consumer applies for a mortgage, credit bureaus often sell that information to other lenders who then contact the consumer with competing offers. This bill would prohibit credit bureaus from sharing a consumer's credit report in connection with a mortgage transaction unless the consumer has given explicit consent or the third party already has an established relationship with the consumer, such as being their current loan servicer or bank.
If enacted, this legislation aims to reduce the volume of unsolicited phone calls, emails, and mailings that homebuyers typically receive immediately after applying for a loan. By requiring documentation of consent or a pre-existing financial relationship, the bill would give consumers more control over who can access their credit data during the homebuying process. These new privacy protections would take effect 180 days after the bill is signed into law.