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Permission to Run a Credit Report

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Question: 
Recently, an LO with poor judgment ran a credit report on a woman after an application from a man who claimed to be her husband, but key here is he was not going to be a co-borrower, he said his credit and income were bad, only his "wife" would be on the loan. Statement of Credit Denial went out, Risk Based Pricing Notices went out, woman is very upset. We ran her credit and says she is not married. Obviously, we goofed and there is peril here. What about joint applications where we speak to only one party and ask permission for pulling credit? Do we have to ask both parties if it is OK to pull credit?
Answer: 

You do not need to talk to all parties before pulling their credit report. Obviously, that would have been nice in this situation, but pulling credit reports on an applicant not present is an industry standard. The man improperly indicated the woman would be a joint applicant. He must have also given the loan officer her name and TIN. I believe this is a form of identity theft and a SAR should be considered.

First published on BankersOnline.com 1/2/12

First published on 01/02/2012

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