Utah passed a bill amending the Residential Mortgage Practices and Licensing Act (RMPLA) with respect to the use of prescreened trigger lead information. Under the bill, a mortgage lender, broker or other person licensed under the RMPLA may not use prescreened trigger lead information to solicit a borrower who has applied for a mortgage loan with another financial institution, if the mortgage lender, broker or other person:
- Fails to state in the initial solicitation that the mortgage lender, broker or other person is not affiliated with the mortgage lender or broker with which the borrower initially applied;
- Fails in the initial solicitation to conform to federal and state law relating to solicitations using consumer reports (including the requirement to make a firm offer of credit to the borrower); or
- Solicits a borrower with an offer of certain rates, terms, and costs with the knowledge that the mortgage lender, broker or other person will subsequently change the rates, terms, or costs to the detriment of the borrower.
“Prescreened trigger lead information” means information derived from a consumer report that is given to a 3rd party that is not affiliated with the borrower.
The bill becomes effective May 7, 2025.
Click to view the Utah House Bill 99: https://www.tenaco.com/wp-content/uploads/2025/04/UT-HB-99.pdf
