MBA, Industry Groups Send Letter on Homebuyers Privacy Protection Act

The Mortgage Bankers Association, along with a number of other trade associations, sent a letter to leadership of the Senate Committee on Banking, Housing & Urban Affairs and the House Committee on Financial Services, expressing strong support for the reintroduction of the Homebuyers Privacy Protection Act.

The bill, recently offered by Sens. Bill Hagerty (R-TN) and Jack Reed (D-RI) and Reps. John Rose (R-TN) and Ritchie Torres (D-NY) would curb the use of mortgage credit “trigger leads” in all but a limited set of circumstances.

In addition to MBA, other groups in the coalition sending the letter include American Bankers Association, America’s Credit Unions, Broker Action Coalition, Center for Responsible Lending, Community Home Lenders of America, CONSUMER ACTION, Consumer Federation of America, Housing Policy Council, Independent Community Bankers of America, Leading Builders of America, National Association of Home Builders, National Association of Mortgage Brokers, NATIONAL ASSOCIATION OF REALTORS, National Consumer Law Center (on behalf of its low-income clients), National Housing Conference and USPIRG.

The letter noted substantially similar legislation passed the Senate by unanimous consent last year.

“Six months after the enactment of the bill, trigger leads would be permissible under the FCRA only in limited circumstances during a real estate transaction and only to provide a firm offer of credit,” the letter highlighted. “A CRA would not be able to furnish a trigger lead to a third party unless the third party has certified to the CRA that either: the consumer explicitly consents to such solicitations; it has originated the current residential mortgage loan of the consumer; is the servicer of the current residential mortgage loan of the consumer; or is an insured depository institution or insured credit union and holds a current account for the consumer.”

Click here to read the full letter