California Financing Law: mortgage trigger lead information.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Banking and Financial Institutions
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Overview
This bill establishes new rules for financial institutions in California regarding the use of ‘mortgage trigger lead’ information – consumer credit data related to real estate loan applications. It prohibits institutions from failing to clearly disclose they aren’t affiliated with the consumer’s original lender and from violating opt-out requests or ‘do not call’ registries. Consumers who experience violations can sue for damages and legal fees.
Key provisions
- Prohibits financial institutions from failing to disclose affiliation with the consumer’s original lender.
- Outlaws the use of mortgage trigger lead information in violation of consumer opt-out requests.
- Bans the use of consumer information in violation of the ‘do not call’ registry.
- Prevents ‘bait-and-switch’ marketing practices related to loan terms.
- Defines ‘mortgage trigger lead’ as specific consumer credit data related to real estate loan applications.
- Authorizes the Attorney General, Commissioner of Financial Protection and Innovation, and local prosecutors to enforce the law.
- Grants consumers a private right of action for damages, injunctive relief, and attorney’s fees.
- Clarifies the definition of ‘financial institution’ to include lenders, brokers, and mortgage originators.
Who is affected
- Financial institutions (lenders, brokers, originators)
Bill text
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