Scenario: In California - a community property state - assume a couple files for divorce but it is not finalized yet. The husband needs a place to live and applies individually for an FHA loan, leaving the estranged wife as a non-applicant, non-borrower, who plans on using non-marital separate funds to purchase her home.
Since this is an FHA loan, the lender needs to pull a credit on the estranged wife to count her debts towards the husband's since the divorce is not final. When the lender calls the estranged wife for consent to pull her report as per our risk management policy, she denies consent for her report just to keep the husband from getting his own place. This makes it harder for him to claim joint custody of the kids.
Reg B has contradicting situations: permissible purpose is granted for community property states so lender does not need spouse's consent. However it also states there is no permissible purpose to obtain a consumer report on a .... nonapplicant spouse who has legally separated or otherwise indicated an intent to legally disassociate with the marriage.
Can lender pull the non-applicant non-borrowing spouse's credit report without her consent due to being in a community property state, or would the divorce show intent to legally disassociate the marriage and overule the permissible purpose granted by being in a community property state?
Do we need a policy on providing payment extensions to borrowers?
Customers see on the news that foreclosures and evictions have stopped and borrowers can skip payments. What should we tell them when they ask about this?
When and to whom must HUDs SCRA mortgage notice be sent out? We prefer to wait for the 45 day notice we already send.
During a review of new loans for the previous month, I found that a joint credit report (husband/wife) was pulled for a new loan that was made to
just 1 of them (the wife).
The previous loan was a joint loan and a joint credit report was used then How do I need to document this finding in my
monthly reports? Along with some additional training for the loan officer, what other things should I be aware of and keep in mind?
Are there any regulations concerning a Land Trust Department having access to retail banking documents in an institution?
Can we report adverse credit to the credit bureau on a commercial loan and the guarantor if we don't normally report our commercial loans to the credit
We have an online loan application that our members complete. It does not have a signature on it. We use that to pull credit, make the loan and the
members come in and sign loan documents. My question is do I need them to complete a loan application in person with a signature or is the on-line
Can a lender purposely not get one of the six TRID items to avoid getting an application in order to delay the loan estimate delivery date?
I have a client (a lender) who orders their credit reports from "XYZ Data" and when a loan is declined, they list Equifax on their Adverse Action
Notice (with appropriate address and phone number) and they have now been told that because "XYZ Data" is considered a reseller of credit under the
FCRA 603(u) that they should also list XYZ Data (along with its name and telephone number) on the Adverse Action Notice. Is this true?