FCRA disclosure needed?

A LLC and a consumer apply jointly for a business purpose loan. We are allowed to pull a credit report on the consumer under FCRA and do so. Now we deny based on the credit of the consumer. Should the consumer receive the denial letter with the FCRA disclosure? Or, does this not apply as it is a business purpose loan? The banker's tool does not address this senario and I am unsure. Thank you in advance!

You are referring to the Consumer Credit Score Disclosure, correct? Because they are only required on Consumer purpose loans that are secured by 1-4 family.

The adverse action notice requirements under 603(k)(1) would indicate that an adverse action notice would be required for the consumer.

The FCRA adverse action notice is required to be provided to a consumer anytime a consumer's request for credit has been denied. It does not matter if the loan purpose is for consumer or business.

For purposes of the FCRA adverse action notice, "consumer" means a natural person. So the natural person receives the FCRA disclosure. The LLC is not a natural person, so the LLC does not receive the FCRA adverse action notice.

You may have to send a Reg. B business AAN too, based on revenue.

I would like to ask a question, if I may?

If I am doing a construction loan (customer owns the land) he is going to build a pole barn but it will also be his residence, shouldn't he get the Consumer Credit Score Disclsoure (notice to Home Loan Applicant)?

If it's his residence, then yes.

I have to ask: A pole barn will be his residence? A pole barn doesn't have any walls - just poles holding up the roof. Really?

Generally pole barns have 6X6 poles sunk into the ground, when using them for a residence a concrete slab is then poured and the home is finished similar to timber frame or post and beam construction. Supposedly less lumber costs than conventional stick built homes.

Here's a link to check out a pole barn home.
http://blitzbuilders.com/structures/homes.php

This brings back thoughts of the "Houseboat" discussion years ago!!