Bill > HF857

This bill establishes new regulations for financial institutions using "mortgage trigger leads" - consumer reports triggered by loan applications that are then used to solicit potential borrowers. The bill defines key terms like "consumer report" and "financial institution" and sets strict guidelines to prevent unfair or deceptive practices when soliciting consumers. Specifically, financial institutions are prohibited from using mortgage trigger lead information in ways that could mislead consumers, such as failing to clearly state they are not affiliated with the original lender, using information from consumers who have opted out of prescreened offers, or making solicitations with rates or terms that are subsequently changed to the consumer's detriment. The bill requires that initial solicitations clearly disclose non-affiliation and comply with state and federal laws regarding prescreened offers. Any violation of these provisions would be considered an unlawful practice under Iowa's consumer protection statutes, potentially subjecting the financial institution to legal penalties. The bill is set to take effect on July 1, 2025, and aims to protect consumers from potentially predatory lending practices related to trigger lead information.

Commerce (H)

https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=HF857