I have read the FACT and FCRA guidelines, but find them confusing when it comes to sharing information with affiliates. I find reference to a proposal that would cause the need for a privacy notice with an opt out provision, but cannot find that it actually went into effect. Here is my scenario. Bank A and Mortgage Co. B are owned by the same holding company. Bank A receives a loan application. In order to provide the customer/consumer with the best loan product, Bank A would like to share the application and credit bureau information with Mortgage Co. B. Does Bank A have to provide a privacy notice with an opt out provision or would the sharing of information be considered exempt under the marketing exemption?
I have two FACT Act questions. Has there been a delivery time period established for the NOTICE TO HOME LOAN APPLICANTS? Are there two types of forms? (One that actually gives the score and another that is a more generic notice that says they will get specific score information in the future.) The form that we are using includes the score, factors, address, phone number, etc. Is it to be delivered within 3 business days at closing? What about a prequalification? We realize that there are quite a few unknowns yet with this regulation, but we have heard various ideas for the content and delivery of this notice.
I understand according to FACTA, a notice to the Home Loan Applicant disclosing credit score information is required, if a consumer applicant applies for an open or closed end credit that will be secured by 1 to 4 family residential real property. Our Bank automatically acquires this notice through our credit bureau reporting agency when credit is pulled. However, our procedures allow a Lender to utilize a credit report that has previously been pulled for some other transaction, as long as it is not older than a designated time frame. This may present a problem for us, since we do not need to pull credit on that customer to make a credit decision on this new real estate transaction. But, as part of our underwriting tool we are taking into consideration the contents and credit score of the previously pulled credit report. If we did not pull a new credit report, and obtain a new credit score to underwrite this new real estate transaction, are we still required to give the FACTA notice to the applicants?
Can you check credit from the credit bureau on a spouse if the borrower is married, but the spouse is not on the loan request?
Does disclosing credit bureau scores only apply to real estate mortgage loans?
What notices are given when a bank pulls a credit report for employment purposes?
Although the medical information rules are placed under the umbrella of the Fair Credit Reporting Act, the necessary steps for compliance are not as straightforward as those traditionally used for
I am confused by the wording in a section of the FCRA protections for consumers who have identity theft or active duty alerts in place on their credit bureau files.