House File 857 establishes regulations for financial institutions regarding the use of prescreened mortgage trigger lead information derived from consumer reports. The bill defines key terms such as "consumer report" and "financial institution," and specifies that a mortgage trigger lead is a consumer report obtained in response to a credit application secured by real property. It prohibits financial institutions from engaging in unfair or deceptive practices when soliciting consumers who have applied for loans with other institutions. Specific practices deemed unfair include failing to disclose non-affiliation with the initial lender, not adhering to prescreened solicitation laws, using information from consumers who have opted out of such offers, and changing the terms of an offer to the consumer's detriment.

Additionally, the bill amends section 714.16 of the Iowa Code to classify violations of the new regulations as unlawful practices. This amendment reinforces the accountability of financial institutions in their solicitation practices and aims to protect consumers from misleading or harmful marketing tactics.

Statutes affected:
Introduced: 527.2
Enrolled: 527.2