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Credit Reports

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I attempted to visit Fannie Mae's website for an answer to my questions and to no avail, so, here they are. <ol><li>Why is it required to pull two separate credit reports when there are co-applicants involved that are not married?<li>If a joint credit report is pulled in error, what does this affect if anything? (i.e. FICO scoring, non compliance, etc?) </ol>

The lender must pull credit reports on all applicants to be certain that the lender and loan purchaser has full and complete information. Pulling a credit report on one applicant might fail to discover that the co-applicant has terrible credit and is using the first applicant to get the loan.

There must be a legitimate business purpose for pulling a credit report. If one spouse applies for a loan with a third party, pulling a joint report would mean that you have obtained a report on the non-applicant without a legitimate business purpose. As such, it would be a violation of FCRA.

First published on 2/6/06

First published on 02/06/2006

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