Sponsors (46)
The bill strengthens consumer privacy and consent around prescreened mortgage credit reports but does so at the cost of added compliance burdens for lenders and CRAs and a likely reduction in prescreened marketing offers.
Consumers applying for residential mortgages (homeowners and renters) will face tighter limits on prescreened sharing of their credit reports, reducing unsolicited use of their credit data and strengthening consumer privacy rights.
Mortgage lenders, servicers, and other firms must certify they have consumer authorization before receiving prescreened reports, which increases consumer consent protections and accountability for data recipients.
Mortgage lenders, servicers, and credit unions will face additional compliance burdens and verification steps when using prescreened reports, increasing administrative work and compliance risk for these financial institutions.
Some consumers may see fewer prescreen-based marketing offers for mortgage products, potentially reducing visibility of deals or competitive offers for those who benefit from prescreen outreach.
Consumer reporting agencies (CRAs) may incur operational and implementation costs to add checks, documentation handling, and compliance processes, which could be passed on to businesses or consumers.
Based on analysis of 3 sections of legislative text.
Stops CRAs from furnishing prescreened consumer reports tied to mortgage requests unless it’s a firm offer or the recipient certifies it has the consumer’s authorization.
Introduced April 10, 2025 by John F. Reed · Last progress June 17, 2025
Restricts how consumer reporting agencies (CRAs) may treat prescreening report requests tied to residential mortgage loan transactions: CRAs may not, based on a mortgage-related prescreen request, furnish a consumer report to another person unless the request results in a firm offer of credit or insurance or the recipient certifies it has the consumer’s authorization. The bill defines key terms (credit union, insured depository institution, residential mortgage loan, servicer) by cross-reference to existing federal definitions and takes effect 180 days after enactment.