Good morning everyone. I have something I want to run by everyone to see how others are handling this.
For our secondary market loans we of course pull a credit report for the loan initially to be able to evaluate the credit application. However, in some cases, not always, the investor requires that we re-pull the customer's credit report right before closing.
Here is my question. How should we be disclosing this on our Loan Estimate? Do we go ahead and disclose the cost for 2 credit reports and then if the 2nd one isn't required we can put just 1 cost on the closing disclosure?
And if we typically collect the credit report cost upfront and we collect the cost for 2 reports. But only end up needing one report. Would I disclose this as a Lender Credit on the bottom of page 2 of the Closing Disclosure?
I hope this makes sense.
It is better to act cautiously beforehand than to suffer afterward.
The answers I give are my opinions. Not legal advice.