The bill seeks to enhance consumer protection in the mortgage industry by prohibiting the use of "trigger leads," which are defined as information about a consumer's creditworthiness obtained from credit reporting agencies following a credit application. It classifies the use of trigger leads as false or deceptive advertising, thereby safeguarding consumers against identity theft. The Banking Commissioner is granted the authority to regulate these practices, ensuring oversight and control. Additionally, the bill amends existing definitions in the Montana Code Annotated (MCA) to include a detailed definition of "trigger lead" while clarifying that it does not encompass consumer reports obtained by licensed mortgage entities in response to consumer-initiated applications.

Moreover, the bill amends Section 32-9-149 of the MCA to strengthen regulations on advertising practices for mortgage licensees. It explicitly prohibits misleading advertising and mandates that advertisements include the name and unique identifier of the mortgage loan originator or licensed entity, promoting transparency. The bill also introduces codification instructions and a severability clause, ensuring that if any part of the act is invalidated, the remaining provisions will still be enforceable. Overall, this legislative update aims to ensure that mortgage advertising is clear, accurate, and compliant with established regulations, thereby enhancing consumer trust and protection in the mortgage market.

Statutes affected:
LC Text: 32-9-103, 32-9-149
HB0470_1(1): 32-9-103, 32-9-149
HB0470_1: 32-9-103, 32-9-149