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#955771 - 05/07/08 09:02 PM Report Guarantor to CRA
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Florida
We have a particular commercial loan that is on default (past due)and our lender wants to be able to report to the CRA the guarantor, can you do that?

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#955916 - 05/08/08 01:19 PM Re: Report Guarantor to CRA Rather be in Vegas
Pale Rider Offline
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under the Lone Star
have they refused or are they unable to perform under the guaranty?
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#956024 - 05/08/08 03:42 PM Re: Report Guarantor to CRA Pale Rider
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They have been contacted and we still have the loan deliquent. In the past our guarantors were not getting past due notices, but we recently did go ahead and turn on the notices for past due loans to also go out to the guarantor. The notice have the verbage under FCRA for "notice of negative information". But prior to turning on guarantor notices, we were mailing out letters and documenting phone calls.

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#956211 - 05/08/08 07:04 PM Re: Report Guarantor to CRA Rather be in Vegas
rlcarey Online
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Galveston, TX
If you do one - you better do all or you might run afoul of fair lending concerns. Typically, commericial relationships are not reported on consumer reports. If they don't perform under the agreement - get a judgement against them and get it reported that way. Why mess with your systems for one customer?
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#956235 - 05/08/08 07:38 PM Re: Report Guarantor to CRA rlcarey
Kathleen O. Blanchard Offline

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Don't do this for just one customer. It is all or nothing. You run the risk of fair lending issues as Randy said. It is not something that should be done because one customer ticked the bank off. You report good and bad payments.
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#956317 - 05/08/08 08:58 PM Re: Report Guarantor to CRA Kathleen O. Blanchard
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We would have to report all, once we turn on the switch to report guarantors we would report all delinquent and also those in good standing.

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#956360 - 05/08/08 09:35 PM Re: Report Guarantor to CRA Rather be in Vegas
rlcarey Online
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Galveston, TX
You may be doing a disservice to a lot of your customers. If I and ten other people guarantee a $1MM loan and you report that on my and every other guarantor's credit report, that is going to have a big impact on them all. How many commercial credits have you every seen reported on a consumer credit report????
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#956373 - 05/08/08 09:49 PM Re: Report Guarantor to CRA rlcarey
Kathleen O. Blanchard Offline

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This can have a huge impact on commercial guarantors as they amounts can be quite large. You could effectively be shutting down their access to personal credit.

I have never been a fan of this practice - even as a commercial lender. It is so much more complex that reporting consumer credit.
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

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#956382 - 05/08/08 09:54 PM Re: Report Guarantor to CRA Kathleen O. Blanchard
Tensho Offline
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Wow, is this coincidence, I was about to post a request for the same exact topic.

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#956932 - 05/09/08 06:16 PM Re: Report Guarantor to CRA Tensho
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Thank you all for responding so quick, I wanted to get the input and thanks to your advice, we are putting a hold on this subject. I'm sure there is a lot of commercial lenders with this thought in mind, but I agree with all of you, I have never seen it done. Once again thank you all for your input.

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