What effect do the FCRA and GLB Act have on Loan Participations? I can't seem to find anything that addresses participations.

Correct me if I am wrong, but I understand that loan participations would be treated in a similar manner to loans that are sold on the secondary market - and therefore exempt from the Privacy opt-out and prohibitions on information sharing under FCRA.

It is part of the actual servicing of a transaction initiated by the consumer.

Now, if the participation is for a business loan, hopefully you have the authorization in file from the principals to have run their consumer credit reports.

How does this also affect correspondent relationships? We've been asked this by an out of state correspondent whose state privacy regulation will be more stringent than the federal regulation. In addition, the state correspondent will have an opt-in while our is an opt-out. Our state has not yet adopted its own privacy requirements.