Sponsors (46)
The bill strengthens consumer privacy and consent for prescreened mortgage credit reports at the cost of added compliance and operational burdens for lenders and credit reporting agencies, with possible downstream effects on marketing availability and costs.
Consumers seeking residential mortgages (homeowners and renters) will have tighter limits on prescreened sharing of their credit reports, reducing unsolicited use of their credit data.
Mortgage applicants will benefit from stronger consent protections because firms must certify they have consumer authorization before receiving prescreened reports.
Mortgage lenders, servicers, and credit unions will face additional compliance burdens and verification steps when using prescreened reports, increasing administrative workload.
Some consumers may see fewer prescreen-based marketing offers, reducing visibility of certain mortgage products that they might have benefited from.
Credit reporting agencies will incur operational costs to implement new checks and documentation requirements, which could be passed on to businesses or consumers.
Based on analysis of 3 sections of legislative text.
Restricts CRAs from furnishing consumer reports from mortgage-related prescreen requests unless it's a firm offer or the recipient certifies consumer authorization.
Introduced April 10, 2025 by John F. Reed · Last progress June 17, 2025
Restricts how consumer reporting agencies (CRAs) can use prescreening report requests made in connection with residential mortgage loan transactions. CRAs may not furnish a consumer report to another person based on a mortgage-related prescreen request unless the request is for a firm offer of credit or insurance, or the recipient certifies it has the consumer’s authorization. The change takes effect 180 days after enactment.