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#1290423 - 11/20/09 03:48 PM FCRA disclosure needed?
Curious Banker Offline
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Joined: May 2004
Posts: 184
A LLC and a consumer apply jointly for a business purpose loan. We are allowed to pull a credit report on the consumer under FCRA and do so. Now we deny based on the credit of the consumer. Should the consumer receive the denial letter with the FCRA disclosure? Or, does this not apply as it is a business purpose loan? The banker's tool does not address this senario and I am unsure. Thank you in advance!

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#1290913 - 11/20/09 08:13 PM Re: FCRA disclosure needed? Curious Banker
lnasst Offline
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Joined: Oct 2009
Posts: 2
You are referring to the Consumer Credit Score Disclosure, correct? Because they are only required on Consumer purpose loans that are secured by 1-4 family.

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#1303959 - 12/11/09 08:00 PM Re: FCRA disclosure needed? Curious Banker
NotALawyer Offline
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Joined: Nov 2001
Posts: 455
The adverse action notice requirements under 603(k)(1) would indicate that an adverse action notice would be required for the consumer.

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#1304296 - 12/11/09 10:51 PM Re: FCRA disclosure needed? NotALawyer
Princess Romeo Offline

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Princess Romeo
Joined: Jun 2001
Posts: 8,272
Where the heart is
The FCRA adverse action notice is required to be provided to a consumer anytime a consumer's request for credit has been denied. It does not matter if the loan purpose is for consumer or business.

For purposes of the FCRA adverse action notice, "consumer" means a natural person. So the natural person receives the FCRA disclosure. The LLC is not a natural person, so the LLC does not receive the FCRA adverse action notice.
Regulations are a poor substitute for ethics.
Just sayin'

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#1308686 - 12/17/09 09:04 PM Re: FCRA disclosure needed? Princess Romeo
CRC Offline
Joined: Apr 2008
Posts: 73
You may have to send a Reg. B business AAN too, based on revenue.
Merely my opinion...

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#1331644 - 01/27/10 01:59 PM Re: FCRA disclosure needed? Curious Banker
donna.raisor Offline
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Joined: Sep 2004
Posts: 554
I would like to ask a question, if I may?

If I am doing a construction loan (customer owns the land) he is going to build a pole barn but it will also be his residence, shouldn't he get the Consumer Credit Score Disclsoure (notice to Home Loan Applicant)?

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#1332759 - 01/28/10 03:19 PM Re: FCRA disclosure needed? donna.raisor
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
If it's his residence, then yes.

I have to ask: A pole barn will be his residence? A pole barn doesn't have any walls - just poles holding up the roof. Really?
David Dickinson

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#1335129 - 02/01/10 08:15 PM Re: FCRA disclosure needed? David Dickinson
Oursisnottoreasonwhy Offline
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Joined: Nov 2004
Posts: 489
Central Illinois
Generally pole barns have 6X6 poles sunk into the ground, when using them for a residence a concrete slab is then poured and the home is finished similar to timber frame or post and beam construction. Supposedly less lumber costs than conventional stick built homes.

Here's a link to check out a pole barn home.

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#1335245 - 02/01/10 09:13 PM Re: FCRA disclosure needed? Oursisnottoreasonwhy
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,832
Bloomington, IN
This brings back thoughts of the "Houseboat" discussion years ago!! smile
The opinions expressed are mine and they are not to be taken as legal advice.

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