HOLD THE LINE.

To amend the Fair Credit Reporting Act to prevent consumer reporting agencies from furnishing consumer reports under certain circumstances, and for other purposes.

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The intention of this Act is to provide an amendment to the Fair Credit Reporting Act (FCRA), that prevents the selling or distribution of the personal information of potential homebuyers whose information may be used to conduct “trigger leads,” (also known as “pre-screened” credit offers).

KEY TAKEAWAYS

1. Any person requesting a screen of their credit for the purposes of a home loan, the agency fulfilling the request may not provide information regarding the request to anyone else, except:
2. It is for the purpose of extending a firm line of credit or insurance AND has documentation proving the consumer has authorized the release.
3. The requesting agency has an existing mortgage loan with the consumer, or services the existing loan.
4. Is an FDIC institution or credit union.

This Act takes effect 180 days from the date of enactment. The Act further allows for the United States Comptroller to conduct a study on the value of trigger leads sent by text message. This study is to include “input from State regulatory agencies, mortgage lenders, depository institutions (as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)), consumer reporting agencies (as defined in section 603 of the Fair Credit Reporting Act (15 U.S.C. 1681a)), and consumers,” [Homebuyers Privacy Protection Act, pg. 2 Section 4(a)].

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