Idaho House endorses consumer disclosure bill for mortgage lead practices

The Idaho House Business Committee convened on February 17, 2025, to discuss significant legislative measures, including House Bill 149, which aims to enhance consumer protection in the mortgage lending process. The bill addresses the use of "trigger leads" by mortgage lenders, requiring them to disclose their identity and intent when contacting consumers who have applied for loans.

During the meeting, Representative Bruce emphasized that while the bill does not eliminate the use of trigger leads, it mandates that lenders identify themselves as third-party solicitors and clarify that they are not affiliated with the consumer's current lender. This requirement aims to reduce confusion and protect consumer privacy during the mortgage application process.

Committee members raised questions regarding the bill's implications for consumer privacy and enforcement. Representative Burch sought clarification on whether the bill would restrict public access to information, to which Representative Bruce responded that it focuses on notification rather than privacy restrictions. The enforcement of the bill would fall under the Consumer Protection Act, allowing consumers to file complaints with the state if they feel misled.

The committee unanimously voted to send House Bill 149 to the floor with a recommendation for approval, signaling strong support for the proposed consumer protections.

In addition to the mortgage bill, the committee discussed the need for improved reporting practices among various agencies, highlighting that some statutory requirements for reporting have not been met. This issue will be addressed in future discussions to ensure compliance and accountability within state agencies.

Overall, the meeting underscored the committee's commitment to enhancing consumer protections in the mortgage industry while also addressing broader issues of agency reporting and oversight.