I have come across something, that I am not sure about in regards to Permissible purpose. The procedure we have in place about Subordination agreements for our customers, is that when we receive a Subordination agreement to execute from the prospective First Mortgage, the Subordination request is giving us Permissible purpose to pull a credit report on the borrowers of our loan. We underwrite the subordination request like a new loan to make sure that the customer will still have the ability to repay our loan.
I just want to make sure that the request for the subordination is truly a permissible purpose to pull credit.

Thanks!

I see no problems with it. You have a request to modify an existing loan.

We are not modifying our existing loan. We are just giving authority to the other institution that their lien will be in 1st position, not 2nd.

You are relinquishing your 1st lien position - how is that not modifying the loan?