President Donald Trump signed into law the bipartisan Homebuyers Privacy Protection Act, ICBA-supported legislation that will help protect the financial privacy of mortgage applicants.
About the Law: Introduced by Reps. John Rose (R-Tenn.) and Ritchie Torres (D-N.Y.) and Sens. Jack Reed (D-R.I.) and Bill Hagerty (R-Tenn.), the Homebuyers Privacy Protection Act will restrict credit reporting agencies from selling consumers’ contact information when they apply for a residential mortgage. These “trigger leads” result in a deluge of solicitations for prospective homebuyers, leading to hassles and confusion for consumers.
Impact on Consumers: In a national news release applauding the signing, ICBA President and CEO Rebeca Romero Rainey noted the law will give consumers more control over their private financial information and shield them from unwanted solicitations
Importance of Community Bank Advocacy: In a message to community bankers, Romero Rainey said the passage of the bill as standalone legislation—a rarity in Congress—reflects the industry’s commitment to advocacy and effectiveness in grassroots outreach.
What it Means for Community Banks: ICBA last month published a summary of the act, which notes that the legislation places strict limits on when it is acceptable for a consumer reporting agency to furnish consumer reports to a third party. The bill also mandates that the comptroller general carry out a study on trigger leads.
ICBA Advocacy: ICBA worked closely with lawmakers in support of the legislation, including in a letter of support ahead of the House markup, during testimony before the House Financial Services Committee earlier this year, and via ICBA’s “Repair, Reform, and Thrive” plan and open letter to the 119th Congress.