Should our bank be reporting mortgages originated and then sold on the secondary market to another lender? Boss wanted to know if the fact that our bank made the original credit decision and then transferred the mortgage to another lender should be on the credit bureau.

I say no - we don't have to report the mortgages that we are selling. FCRA doesn't require that bank's report all credit, but to do so accurately on the credit reported. Any support would be appreciated.

You are right about having the option to report. FCRA does not require reporting.

If you sold to the secondary market and retain servicing rights, you would be able to furnish account activity info to the bureaus. I'm not sure it there are any secondary market requirements that you have to furnish, I have always worked at institutions that chose to report, so have not researched that.

FHLMC and FNMA both require reporting of serviced mortgages to all three of the CRAs.