Paraphrasing will get you in trouble sometimes.
The FCRA actually says:
(g) Disclosure of Credit Scores by Certain Mortgage Lenders
(1) In general. Any person who makes or arranges loans and who uses a consumer credit score, as defined in subsection (f), in connection with an application initiated or sought by a consumer for a closed end loan or the establishment of an open end loan for a consumer purpose that is secured by 1 to 4 units of residential real property (hereafter in this subsection referred to as the “lender”) shall provide the following to the consumer as soon as reasonably practicable:
So, there are a couple of boxes to check.
1. Do you have an application. While the FCRA does not specifically define an application, it commonly agreed that the definition in FCRA would be the same as the ECOA. So, in my opinion you have an application.
2. Since they are applying for a determination of their credit capacity for a loan for the establishment of consumer credit that is secured by 1 to 4 units of residential property, I think this box is checked also.
Many banks that order credit mortgage reports and part of this service is for the credit bureau to automatically sending this notice to the applicant anytime such a report is ordered.
_________________________
The opinions expressed here should not be construed to be those of my employer:
PPDocs.com