WASHINGTON--The Senate passed the credit union-supported Homebuyers Privacy Protection Act (H.R. 2808) by unanimous consent Saturday, sending the bill to the president’s desk, America's Credit Unions reported.
The House passed the bill last month, which would curtail the abuse of mortgage trigger leads by limiting who can access the information.
“America's Credit Unions thanks our Senate and House partners for passing the Homebuyers Privacy Protection Act. Consumers looking to purchase a home deserve to have their privacy respected and their data secured,” said America’s Credit Unions President/CEO Jim Nussle. “This bill ensures that they are protected from the abusive use of trigger leads and preserves the positive relationship members want from their trusted credit unions. We call on President Trump to quickly sign this legislation into law and further protect consumers seeking their American Dream.”
Specifically, the bill prohibits a credit reporting agency from providing a consumer's credit report to a third party in connection with a residential mortgage transaction unless the transaction consists of a firm offer of credit or insurance and:
- The third party provides documentation verifying consumer consent
- The third party has originated a mortgage on behalf of the consumer, is a current mortgage loan servicer to the consumer, or has a current specified banking relationship with the consumer
These provisions will take effect 180 days after the bill is signed into law.
DCUC Applauds Passage
“We applaud the Senate’s swift, unanimous passage of the Homebuyers Privacy Protection Act, which demonstrates a clear bipartisan commitment to safeguarding consumers’ data privacy during one of life’s most important milestones,” said Anthony Hernandez, DCUC president/CEO. “Homeownership is a cornerstone of the American Dream, and consumers looking to purchase a home deserve to have their privacy respected and their data secured. Credit unions are already held to some of the highest data privacy and security standards in the financial sector, and this common-sense legislation builds on that commitment by closing loopholes that previously allowed unscrupulous actors to exploit borrowers’ personal information...By ending the abusive use of trigger leads, the Senate is helping ensure that homebuyers – including our nation’s service members and veterans – can work with their trusted credit unions without fear that their personal data will be misused during the mortgage process.”
Jason Stverak, DCUC’s chief advocacy officer, also voiced strong support and highlighted DCUC’s role in advancing the legislation.
“DCUC has stood firmly behind the Homebuyers Privacy Protection Act from the start, and we’re proud to see Congress heed the call to protect consumers," Stverak said. "At its core, this reform puts homebuyers back in control of their personal information during the mortgage process, cutting down on unwanted spam calls, texts, and emails,” said Stverak. “This bill is a victory for every homebuyer’s right to data privacy and security. It will curb the abusive practice of mortgage trigger leads, which have too often exposed consumers to unwanted solicitations and predatory offers.
"For defense credit unions, protecting our members’ personal information – especially for military families – is not just good policy, it’s part of our mission," continued Stverak. "By ensuring that sensitive homebuyer data cannot be sold off to third parties without consent, H.R. 2808 preserves the trust-based relationship between credit unions and their members, allowing our service members and all credit union members to pursue the American Dream of homeownership with confidence that their financial privacy is guarded. We thank the Senate for moving this bill forward and urge the President to swiftly sign the Homebuyers Privacy Protection Act into law, so these critical protections can take effect without delay.”