The Arkansas State Legislature has introduced House Bill 1184, aimed at regulating mortgage solicitation practices to protect consumers from deceptive marketing tactics. Introduced on January 22, 2025, the bill addresses concerns surrounding "mortgage trigger leads," which are generated from consumer credit reports and used by solicitors to target potential borrowers.

The primary provisions of HB 1184 establish clear guidelines for solicitors who base their outreach on these mortgage trigger leads. Notably, the bill mandates that solicitors must explicitly inform consumers that they are not affiliated with the original lender or broker and that their solicitation is based on personal information obtained without the consumer's consent. Additionally, the bill reinforces compliance with the Fair Credit Reporting Act, ensuring that consumers who have opted out of prescreened offers are not targeted.

Key issues addressed by the bill include the potential for misleading solicitations that could exploit consumers' personal financial information. The legislation also prohibits solicitors from making offers that they know will change unfavorably for the consumer after the initial solicitation.

Debate surrounding HB 1184 has highlighted concerns from both consumer advocacy groups and industry representatives. Supporters argue that the bill is a necessary step to enhance consumer protection and transparency in the mortgage market. Conversely, some industry stakeholders express worries that the regulations may impose excessive burdens on legitimate marketing practices.

The implications of HB 1184 could be significant, as it aims to foster a more transparent mortgage solicitation environment, potentially reducing the number of deceptive practices in the industry. If passed, the bill would empower the Arkansas Attorney General to create rules for enforcement, further solidifying consumer protections.

As the legislative process unfolds, stakeholders will be closely monitoring the bill's progress and its potential impact on the mortgage industry and consumer rights in Arkansas.