Okay...we have had a general rule in the bank that we do not give our customers a copy of their credit report that we pull. A loan officer is questioning me on this and I really can't say exactly why we came to that decision. With my mind whirling with RESPA, HPMLs, and everything else right now I can't think of a reg/law or guide that we are violating in doing that...can someone help me here...

You need to read the contract between you and your CBI. You can discuss it and they may allow you giving a copy, but generally the contract will not allow the latter.

I may be mistaken, but I thought the FCRA prevented CRA's from prohibiting FI's from providing copies (at their discretion).

That's true, but only IF you deny them based on the CR. See §607(c).

Correct, along the same lines as you HAVE to give a copy if it's for employmement denial reasons.

No, the FCRA does NOT prohibit you from providing copies of the credit report to the consumer. Scroll down to "Section 604-General #3" which states:

3. User's Disclosure of Report to Subject Consumer

The FCRA does not prohibit a consumer report user from giving a copy of the report, or othervise disclosing it, to the consumer who is the subject of the report.

Also, our credit bureau contracts don't prohibit it either. In fact, they state that we CAN give a copy to the consumer.

I'm not saying I recommend it, but it isn't prohibited.