Homebuyers Privacy Protection Act
Officially: “Homebuyers Privacy Protection Act” Read the full text
What it does
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1Short title
This section would give the Act a short title: the Homebuyers Privacy Protection Act.
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1. Short title This Act may be cited as the Homebuyers Privacy Protection Act .
2Treatment of prescreening report requests
This section would add a new rule to the Fair Credit Reporting Act about credit reports pulled when someone applies for a home mortgage. First, it would define four terms used in the new rule by pointing to their meanings in other federal laws: credit union would mean a federal credit union or a state credit union as defined in the Federal Credit Union Act; insured depository institution would have the meaning given in the Federal Deposit Insurance Act; residential mortgage loan would have the meaning given in the S.A.F.E. Mortgage Licensing Act of 2008; and servicer would have the meaning given in the Real Estate Settlement Procedures Act of 1974. Second, it would set a limit on when a consumer reporting agency can pass along a consumer's credit report to other companies after that report was pulled in connection with a mortgage credit transaction. If a person requests a consumer report from a consumer reporting agency for a credit transaction involving a residential mortgage loan, the agency could not furnish a consumer report on that same consumer to any other person based in whole or in part on that request unless two conditions are both met. The first required condition is that the transaction to that other person must be a firm offer of credit or insurance. The second required condition is that the other person receiving the report must fall into at least one of these categories: the other person has given the agency documentation certifying that it already has the consumer's authorization to receive the report; or the other person has originated a current residential mortgage loan held by that consumer; or the other person is the servicer of a current residential mortgage loan held by that consumer; or the other person is an insured depository institution or a credit union that also holds a current account for that consumer. In effect, this would stop consumer reporting agencies from selling a homebuyer's mortgage-related credit report to other lenders or insurers who want to solicit that homebuyer, unless the receiving company is the consumer's own current mortgage lender, current loan servicer, or a bank or credit union where the consumer already holds an account, or unless the company already has the consumer's authorization, and even then only when the offer being made is a firm offer of credit or insurance.
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2. Treatment of prescreening report requests Section 604(c) of the Fair Credit Reporting Act ( 15 U.S.C. 1681b(c) ) is amended by adding at the end the following: (4) Treatment of prescreening report requests (A) Definitions In this paragraph: (i) Credit union The term credit union means a Federal credit union or a State credit union, as those terms are defined in section 101 of the Federal Credit Union Act (12 U.S.C 1752). (ii) Insured depository institution The term insured depository institution has the meaning given the term in section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813(c) ). (iii) Residential mortgage loan The term residential mortgage loan has the meaning given the term in section 1503 of the S.A.F.E. Mortgage Licensing Act of 2008 ( 12 U.S.C. 5102 ). (iv) Servicer The term servicer has the meaning given the term in section 6(i) of the Real Estate Settlement Procedures Act of 1974 ( 12 U.S.C. 2605(i) ). (B) Limitation If a person requests a consumer report from a consumer reporting agency in connection with a credit transaction involving a residential mortgage loan, that agency may not, based in whole or in part on that request, furnish a consumer report to another person under this subsection unless— (i) the transaction consists of a firm offer of credit or insurance; and (ii) that other person— (I) has submitted documentation to that agency certifying that such other person has, pursuant to paragraph (1)(A), the authorization of the consumer to whom the consumer report relates; or (II) (aa) has originated a current residential mortgage loan of the consumer to whom the consumer report relates; (bb) is the servicer of a current residential mortgage loan of the consumer to whom the consumer report relates; or (cc) (AA) is an insured depository institution or credit union; and (BB) holds a current account for the consumer to whom the consumer report relates. .
3Effective date
This section would state that the Act, and the amendments the Act makes, would take effect on the date 180 days after the Act is enacted.
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3. Effective date This Act, and the amendments made by this Act, shall take effect on the date that is 180 days after the date of enactment of this Act.
Where it is
In the Senate.