State law requires that the holder of a second mortgage turn over insurance proceeds received for damaged collateral (hurricane damage) to the first mortgage holder, or else be accountable and liable to the first mortgage holder for the sums received. If the insurer in good faith pays the wrong mortgagee, the insurer is exonerated, but the person receiving payment is accountable to the first mortgage holder (if an assignment of insurance proceeds is contained in the mortgage). We are receiving checks (from our customers) payable by insurance companies to our bank (holding a second mortgage) and the owner/our customer, without the first mortgage holder being named as a payee on the checks. Do we have a permissible purpose to pull a credit report on the consumer to determine the balance on the prior mortgage? Would this possibly fall into "a legitimate business need for the information---(i) in connection with a business transaction that is initiated by the consumer"? Any thoughts or opinions would be appreciated!