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#1072041 - 10/28/08 05:49 PM credit score in loan write up
complyorelse Offline
Gold Star
Joined: Nov 2007
Posts: 448
U.S.
Is there anything wrong with referencing a credit score in a commercial loan write up? I know in consumer lending we have the disclosure signed and if it is for risk based pricing we would need that notice but this is just for general underwriting purposes for all commercial loan applicants with both good and bad credit.

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Lending Compliance
#1072212 - 10/28/08 08:08 PM Re: credit score in loan write up complyorelse
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,532
Bloomington, IN
If the factors of the credit score played a part in the credit decision for the business purpose credit I personally see nothing wrong mentioning those reasons in the write up, providing of course the individual who's score you are referring to was to be personally liable on the business debt. If they were not then their individual credit score should not play a factor in the credit decision, in fact you have no permissible purpose to have their credit score/report if they were not to be personally liable on the debt.
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The opinions expressed are mine and they are not to be taken as legal advice.

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