Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Consumer Privacy Mortgage topic
No spam. Unsubscribe anytime.
Committee introduces bill to require mortgage solicitors to disclose use of purchased application data
Summary
Representative Bruce presented RS32003 to restrict or clarify use of 'mortgage trigger leads' and require solicitors to disclose they are not the consumer’s current lender and that they purchased the lead; the committee voted to introduce the RS.
The House Business Committee voted to introduce RS32003 on Wednesday, an RS sponsored by Representative Bruce that seeks to regulate the use of so-called "mortgage trigger leads" and increase disclosure to consumers.
Representative Bruce said mortgage trigger leads arise when credit-reporting companies sell data from mortgage applications to other companies that then contact applicants. The RS, as described by Bruce, would add a section to Idaho Code (title and section described for committee record) to define mortgage trigger leads and to prohibit certain solicitation practices or require clearer disclosure by solicitors that they purchased the lead and are not the applicant’s current lender.
"Currently such leads result in consumers being contacted by mortgage creditors often causing confusion as they are unable to distinguish whether the call is from their actual mortgage lender or from another company," Bruce said. He said the proposal is intended to clarify calls for applicants and align with federal Consumer Financial Protection Bureau (CFPB) policy while adding state-level disclosure requirements.
Representative Crane moved to introduce RS32003; the motion carried by voice vote. Bruce and committee members indicated the RS would be refined in committee hearings where stakeholders and staff could provide technical input.
