Earlier this month, the FTC released updated text of the Fair Credit Reporting Act (FCRA), which compiles the complete text of the FCRA, including all amendments, into one document to assist users and furnishers of consumer reports with compliance. The document was revised to include the Homebuyers Privacy Protection Act’s (Public Law 119-36) requirements in Section 604 on pages 17 and 18, which went into effect earlier this month. The Act was implemented to prevent consumer reporting agencies from selling consumer reports to third parties for mortgage trigger leads, as such practice results in excessive and unwanted loan solicitations to consumers.

The Act includes the following limitations on requests for prescreening reports:

“If a person requests a consumer report from a consumer reporting agency in connection with a credit transaction involving a residential mortgage loan, that agency may not, based in whole or in part on that request, furnish a consumer report to another person under this subsection unless—

  • the transaction consists of a firm offer of credit or insurance; and
  • that other person—
    • has submitted documentation to that agency certifying that such other person has, pursuant to paragraph (1)(A), the authorization of the consumer to whom the consumer report relates; or
    • has originated a current residential mortgage loan of the consumer to whom the consumer report relates;
  •  is the servicer of a current residential mortgage loan of the consumer to whom the consumer report relates; or
    • is an insured depository institution or credit union; and
    • holds a current account for the consumer to whom the consumer report relates.”

This Act is a reminder for financial institutions to review their FCRA policies and procedures to ensure that such documents require that they have a permissible purpose for every consumer report that they obtain and that they do not furnish reports to another person unless such person has a permissible purpose to obtain the report.  In particular for those organizations engaged in mortgage lending, now is a good time to review policies and practices as it relates to the use of consumer reports in the organization’s mortgage operations.

Please reach out to Winthrop & Weinstine’s regulatory team if you or your organization has any questions about compliance with the FCRA.

March 30, 2026