The Homebuyers Privacy Protection Act, viewed as an important first step in limiting unwanted robocalls that inundate consumers, advanced in Congress last week.
The bill, S. 1467, passed the Senate on June 12, while the companion bill in the House, H.R. 2808, passed the House Financial Services Committee on June 10.
The bill would restrict “trigger lead” abuses in the mortgage industry. Trigger leads occur when a consumer’s credit inquiry “triggers” the sale of their information to third-party lenders and businesses. Specifically, when a mortgage lender runs a credit check during the home buying process, it appears on the consumer’s credit report. The major credit reporting bureaus may then sell that information to other lenders or brokers, which then use it to contact consumers unprompted to solicit business.
The bill was introduced in the Senate by Sens. Jack Reed (D-RI) and Bill Hagerty (R-TN). According to the text of the bill, the legislation would amend the Fair Credit Reporting Act to prevent consumer reporting agencies from furnishing consumer reports under certain circumstances.
“Buying a home is already a complex and stressful process. Consumers should not get needlessly ‘spammed’ with unsolicited, predatory offers just because they take a necessary step in the homebuying process. This bill would halt abusive trigger leads,” Reed said. “The Homebuyers Privacy Protection Act will put consumers back in the driver’s seat and help cut down on the spam. It will help reduce predatory practices and provide much needed relief from unwanted industry calls, texts, and emails.”
The Homebuyers Privacy Protection Act is supported by a wide array of consumer advocacy groups and financial trades, including the Mortgage Bankers Association, the Independent Community Bankers of America, the American Bankers Association, the National Association of Mortgage Brokers, the Broker Action Coalition, Community Home Lenders of America, the National Consumer Law Center, the Consumer Federation of America, Americans for Financial Reform, and others.
“The Senate passage of this important bill, following similar legislation advancing in the House Financial Services Committee earlier in the week, is an enormous step toward finally putting a stop to trigger lead abuses,” MBA’s President and CEO Bob Broeksmit said. “We commend Senators Jack Reed (D-RI) and Bill Hagerty (R-TN), as well as the bill’s dozens of bipartisan cosponsors, for their continued leadership on this issue – a top MBA advocacy priority.”
The National Association of Attorneys General (NAAG) also supports the legislation.
“Not only are these solicitations an infringement on consumer privacy, but a number of these companies misrepresent themselves and cause confusion or sometimes outright deception of consumers,” the association wrote in a letter to the leaders of the House Financial Services and Senate Banking committee. “The Homebuyers Privacy Protection Act strikes the appropriate balance of consumer protection from unwanted and potentially deceptive solicitations, coupled with the promotion of a competitive marketplace for all institutions by providing guardrails around who may use trigger leads.”
The House version of the bill was introduced by Reps. John Rose (R-TN) and Ritchie Torres (D-NY).