To Amend The Fair Mortgage Lending Act; And To Protect A Consumer's Privacy In Certain Mortgage Applications.
Summary
HB1184 amends Arkansas’s Fair Mortgage Lending Act to address the use of “mortgage trigger leads,” which are consumer reports generated when a person applies for credit and that can then be sold or used to solicit that consumer. The bill defines “consumer report” and “mortgage trigger lead,” while excluding reports obtained by a lender that already holds or services the applicant’s existing debt. It also adds a new prohibited practice for mortgage lenders, brokers, bankers, and loan officers who use trigger leads in a misleading or deceptive way.
Under the bill, a person contacting a consumer using a mortgage trigger lead must make specific disclosures in the initial communication, including the loan officer’s and sponsor’s identity, how the contact information was obtained, that the solicitation is based on purchased consumer information, that the caller is not affiliated with the consumer’s original creditor, and that the purpose is to solicit new business. The bill also prohibits contacting consumers who have opted out of prescreened credit offers or who are on the national Do-Not-Call registry, and it bars knowing use of trigger-lead information in violation of state law or the federal Fair Credit Reporting Act.
Impact
HB1184 changes Arkansas consumer-credit and mortgage-lending law by adding new definitions and compliance obligations to the Fair Mortgage Lending Act. It creates a state-law framework limiting how mortgage trigger leads may be used, effectively regulating post-application solicitation practices in the mortgage market and giving consumers greater privacy protections. Mortgage lenders, brokers, bankers, and loan officers will need to adjust marketing and outreach practices to include required disclosures and to avoid contacting protected consumers.
Sentiment
The bill appears to have broad support and little visible opposition. It passed the House 97-0 on third reading and the Senate 34-0 on third reading, indicating unanimous approval in both chambers. The available record does not include committee debate, but the voting history suggests the measure was viewed favorably as a consumer privacy and fair lending reform.
Contention
No major points of contention are reflected in the available materials. The main policy tension inherent in the bill is between consumer privacy and the mortgage industry’s use of trigger leads for marketing, but the recorded votes show no opposition. The bill’s specific disclosure requirements and restrictions on contacting consumers on opt-out or Do-Not-Call lists are the most likely areas where industry compliance concerns could arise, though no formal objections are documented here.