House Bill No. introduced by T. Falk seeks to enhance consumer protection in the mortgage industry by revising laws related to mortgages and deceptive advertising, specifically by prohibiting the use of "trigger leads." A "trigger lead" is defined as information about a consumer's creditworthiness that is compiled by a credit reporting agency in response to a consumer's application for credit, but not initiated by the consumer. The bill empowers the Banking Commissioner to regulate these trigger leads to help prevent identity theft and amends existing definitions in the Montana Code Annotated (MCA) to clarify the scope of false or deceptive advertising practices, particularly emphasizing that such practices include the use of trigger leads.

The bill includes specific amendments to Sections 32-9-103 and 32-9-149 of the MCA, inserting new language that defines "trigger lead" and clarifies that it does not encompass consumer reports obtained by licensed mortgage entities in response to applications made directly by consumers. It also enhances regulations surrounding advertising practices for mortgage licensees by prohibiting misleading advertisements, requiring disclosures about credit limitations, and mandating the inclusion of mortgage loan originators' names and identifiers in advertisements. Furthermore, the bill allows the department to adopt rules to further define false or misleading advertising and establishes requirements for electronic advertising formats. A severability clause is included to ensure that if any part of the act is deemed invalid, the remaining valid parts will still be enforceable, promoting transparency and consumer protection in the mortgage industry.

Statutes affected:
LC Text: 32-9-103, 32-9-149
HB0470_1(1): 32-9-103, 32-9-149
HB0470_1(2): 32-9-103, 32-9-149
HB0470_1(3): 32-9-103, 32-9-149
HB0470_1(4): 32-9-103, 32-9-149
HB0470_1: 32-9-103, 32-9-149