Summary
Stops credit reporting companies from selling your information to other lenders when you apply for a home loan, protecting you from unwanted offers.
What problem does this solve?
When you apply for a mortgage, other lenders can buy your information and send you lots of unwanted offers. This law stops that by limiting who can get your credit report, so you are not bothered by so many calls and texts.
Who does this affect?
- Homebuyers
- Mortgage Lenders
- Credit Reporting Agencies
What does this law do?
Restricts sharing of mortgage credit inquiries
Forbids credit reporting agencies from providing a consumer's report to another company just because the consumer applied for a mortgage.
Allows sharing with consumer's permission
Creates an exception allowing a report to be shared if the company has documents showing the consumer authorized it.
Allows sharing with existing financial institutions
Permits sharing with a consumer's current mortgage lender, loan servicer, or a bank or credit union where they have an account.
What is the real world impact?
•
Protects homebuyers from overwhelming and potentially predatory offers
Stops the flood of unsolicited calls, texts, and mail that homebuyers receive after applying for a loan. This helps prevent confusion and protects them from high-pressure sales tactics.
When does this start?
This law's rules will start 180 days after it is signed, and a related government study is due within one year.
Effective date for new rules
The new restrictions on sharing consumer reports will take effect 180 days after the date the act is signed into law.