Summary

Limits when consumer reporting agencies may share consumer reports obtained for mortgage-related credit transactions. The bill adds definitions for credit union, insured depository institution, residential mortgage loan, and servicer, and generally bars furnishing mortgage-purpose credit reports to third parties except in narrow, documented situations (for example, firm offers of credit or other authorized recipients). It also requires the Comptroller General to study and report to Congress within 12 months on the use and value of text-message “trigger leads.” The law and its amendments take effect 180 days after enactment.

Key Points

• Adds definitions for credit union, insured depository institution, residential mortgage loan, and servicer to the Fair Credit Reporting Act.
• Generally prohibits consumer reporting agencies from furnishing consumer reports obtained for mortgage-related transactions to third parties, with limited exceptions.
• Allows sharing in narrow situations such as firm offers of credit or where recipients satisfy authorization/documentation requirements.
• Requires a Comptroller General (GAO) study on text-message “trigger leads” with input from regulators, industry, and consumers and a report to Congress within 12 months.
• Takes effect 180 days after enactment, giving affected parties time to adjust policies and procedures.
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• Does not appropriate new funds or create a new federal program; it changes privacy/consumer-reporting rules and mandates a study.
• Likely reduces some unsolicited marketing to prospective homebuyers by restricting resale or sharing of mortgage-purpose credit reports.

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