HF 857: Relating to solicitation by a financial institution using prescreened trigger lead information from a consumer report

What it does

This bill relates to solicitation by a financial institution using prescreened trigger lead information from a consumer report. Under the bill, a financial institution shall not use an unfair or deceptive practice when using prescreened mortgage trigger lead information derived from a consumer report to solicit a consumer who has applied for a loan with a different financial institution. “Consumer report”, “financial institution”, and “mortgage trigger lead” are defined in the bill. A financial institution is engaged in an unfair or deceptive practice when in an initial phase of a solicitation from a lender or loan broker, the financial institution fails to clearly and conspicuously state that the financial institution is not affiliated with the financial institution with which the consumer initially applied; fails to conform to state and federal law relating to prescreened solicitations using consumer reports, including but not limited to the requirement to make a firm offer of credit to the consumer; uses information regarding a consumer who has opted out of prescreened offers of credit or who has placed the consumer’s contact information on a federal do-not-call registry; or solicits a consumer with an offer of certain rates, terms, or costs, but subsequently changes the rates, terms, or costs to the detriment of the consumer.

House subcommittee · named February 11, 2025

• Rep. Carter F. Nordman (R) · carter.nordman@legis.iowa.gov
• Rep. Rob Johnson (D) · rob.johnson@legis.iowa.gov
• Rep. Shannon Latham (R) · shannon.latham@legis.iowa.gov

Lobbying · 9 for, 0 against

For: AARP Iowa; Farm Credit Service of America; Greater Des Moines Habitat for Humanity; Habitat for Humanity of Iowa; Home Builders Association of Iowa; Iowa Association of Realtors; Iowa Bankers Association; Iowa Credit Union League; Iowa Mortgage Association

In plain words

1. February 11, 2025Filed in the House and sent to the Commerce committee · as HSB 150
2. February 11, 2025House subcommittee named: Nordman, Johnson, R. and Latham · as HSB 150
3. February 26, 2025Subcommittee recommended passing it with changes · as HSB 150
4. March 4, 2025Approved by the House committee · as HSB 150
5. March 4, 2025Committee vote: 23–0 · as HSB 150
6. March 7, 2025Filed in the House
7. March 7, 2025Approved by the House committee, and given a new number: HF 857 · as HSB 150
8. March 19, 2025Passed the House, 96–0
9. March 20, 2025Arrived in the Senate
10. April 9, 2025Took the place of SF 587 on the Senate floor (the same legislation)
11. April 9, 2025Passed the Senate, 47–0
12. April 17, 2025Sent to the Governor
13. April 18, 2025Signed into law