Sponsors (46)
The bill strengthens consumer privacy and consent around prescreened mortgage credit reports, at the cost of added compliance and operational burdens for lenders, servicers, and CRAs and a potential reduction in prescreen-based offers reaching some consumers.
Homeowners, renters, and other mortgage consumers will face tighter limits on prescreened sharing of their credit reports, reducing unsolicited use of their credit data and giving consumers greater control over who receives their credit information.
Consumers seeking residential mortgages benefit from stronger consent protections because firms must certify they have consumer authorization before receiving prescreened reports, improving accountability and privacy safeguards.
Mortgage lenders, servicers, credit unions, and other mortgage-market participants will face additional compliance burdens and verification steps when using prescreened reports, increasing administrative workload and costs for financial institutions.
Some consumers (homeowners and renters) may see fewer prescreen-based marketing offers, which could narrow visibility to beneficial products and discounts that they might otherwise receive.
Consumer reporting agencies (CRAs) and firms that process prescreened reports may incur operational and implementation costs to meet the new certification and documentation requirements, costs that could be passed on to businesses or consumers or absorbed by taxpayers in certain circumstances.
Based on analysis of 3 sections of legislative text.
Limits CRAs from sharing prescreen reports tied to residential mortgage requests unless a firm offer exists or the recipient certifies consumer authorization.
Official title: Amend the Fair Credit Reporting Act to prevent consumer reporting agencies from furnishing consumer reports under certain circumstances, and for other purposes.
Introduced April 10, 2025 by John F. Reed · Last progress June 17, 2025
Limits how consumer reporting agencies (CRAs) can use prescreening report requests tied to residential mortgage loan transactions: CRAs may not use such a request to furnish a consumer report to another party unless the request relates to a firm offer of credit or the receiving party certifies it has the consumer’s written authorization. The law defines key terms (credit union, insured depository institution, residential mortgage loan, servicer) by cross-reference and takes effect 180 days after enactment.