For banks that provide combined ECOA-FCRA disclosures, is it standard practice to “Check the 1st Box” and provide FCRA credit score information if the decline reason is not based on the consumer report, but some other factor? (i.e. insufficient collateral, product not offered, out of lending area) Do other banks do this?
We understand that we do NOT have to “Check the 1st box” and provide credit score information if it was NOT used in making the adverse decision, but what would be the risk to provide this information in the above cases?
In a scenario where the appraised value came in low, would an appraisal be considered as 3rd party information?
The Fair Credit Reporting Act requires that each applicant (assuming there is a co-applicant) receive an FCRA adverse action notice in the event of an adverse action. Assume that there is a joint application for an installment loan, not secured by real estate (auto loan for example). The loan is denied because after a review of the credit reports of both applicants, the primary applicant previously filed for bankruptcy and the co-applicant has delinquent obligations with creditors. Should each separate notice provided to the applicant and co-applicant only list the reasons specific to their own credit history? In other words, should the applicant's notice only reference the bankruptcy and the co-applicant's notice only reference the delinquent credit obligations? My reasoning for feeling this way is that 1. it protects the privacy of the applicant and co-applicant and 2. it will better inform the applicant and co-applicant of what specific reasons were used in their denial so that each individual may correct them in order to secure the credit in the future. I understand only one would need an ECOA notice but my concern comes specifically from FCRA notice requirements.
When you are denying a loan and you send a denial to the applicant do you also need to send one to the guarantor?
If you turn a consumer down for a loan and the consumer asks for a copy of the credit report that the lender pulled, can you give him a copy? Where is this located in the Reg?
Shopping Dealer Paper under the FCRA
By BOL Guru John S. Burnett
Must Insurors Send Adverse Action Notices?
Can our Lending department use a credit report from our mortgage department to offer a pre-approval Home Equity to a customer? Is there a section in the FACT Act that addresses this and can you refer me?
Question: Our consumer lending center sometimes takes calls from consumers who want to apply for a mortgage loan.
by Mary Beth Guard
Consumers who live in any one of the following thirteen states may request a free annual credit report beginning December 1, 2004: