"This new law is a major victory for mortgage borrowers that will protect them from the barrage of unwanted calls, texts and emails they too often received immediately after applying for a mortgage, Bob Broeksmit, president and CEO of the Mortgage Bankers Association (MBA), said in a statement. It will create a more efficient, responsible, and respectful home buying process when it goes into effect on March 5, 2026."
"The law bars companies from making offers of credit unless a consumer provides explicit consent, or the offer comes from their existing originator, servicer, bank or credit union. Firms must also be prepared to extend a bona fide credit offer. While most trade groups applauded the law, some industry professionals are less enthusiastic about its opt-in requirement for consumers. Critics told HousingWire the measure could give retail lenders another way to box out competitors, raising questions about whether the rule protects consumers or undermines competition."
A new federal law bars companies from making unsolicited offers of credit to mortgage applicants unless consumers provide explicit consent or the offer comes from their existing originator, servicer, bank, or credit union. Firms that make offers must be prepared to extend bona fide credit. The law will take effect on March 5, 2026, and aims to curb trigger lead abuses and reduce post-application marketing. Trade groups largely applauded the consumer protections, while some industry professionals warn the opt-in requirement could be used by retail lenders to limit competition. The Mortgage Bankers Association committed to assisting members and federal agencies with a six-month transition.
Read at www.housingwire.com
Unable to calculate read time
Collection
[
|
...
]