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If your client ask, Do you give them a copy of their credit report?????

By Joe Adams

Mortgage and Lending with Major Mortgage USA/Branch Manager

June 18, 2008 09:26 AM

I just love having new loan officers in the office, the topics of conversation are endless...... Today, we get a referral from a Realtor that Bank XYZ has told this client that FHA guidelines are 3 years out of bankruptcy..... So my loan officer comes to me and no it is still 2 years..... So the loan officer ask the potential client if he got a copy of his credit report from Bank XYZ. Bank XYZ declines to give it to him. But he tells me that I always give the client a copy...... of course I do (after I black out all of our company's information)..... So why do I he ask...........

Because under the

Fair & Accurate Credit Trasactions Act (FACTA) of 2003

"....... Any person who makes or arranges loans and who uses consumer credit scores in connection with a closed end loan (or the establishment of an open ended loan for a consumer purpose) that is secured by a one to 4 unit residential property shall provide a copy of the information (including credit scores) obtained from a consumer reporting agency used in the underwriting decision......."

Now, I read that to be a copy of the report. After all isn't the report the "information"?

Besides, it is a nice business practice.

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Bill Austin

East Valley Living - Scottsdale, AZ

That seems reasonable to me - is it okay withthe credit reporting agency?

Thay probably want thier pound of flesh.

Jun 18, 2008 09:30 AM

Erin Newington

5305573559 - Grass Valley, CA

Sierra Foothills Realtor

I agree. I always provide a copy to the client.

Jun 18, 2008 09:32 AM

Eleanor Thorne

Equity Resources - Cary, NC

Advantage Lending 919-649-5058

Silly Bank! Why wouldn't you give them the report? How else are you going to counsel them on ways to improve their score (no matter what the score is!) - saving them money on their insurance and credit cards too! Customers for life baby! Great way to put Bank XYZ out of biz!

Jun 18, 2008 09:33 AM

Joe Adams

Major Mortgage USA/Branch Manager - Montrose, CO

Bill, as long as the credit bill is paid every month I dont see an issue

Team .... I just think it is good business as you do also

Eleanor......... all I can say is got us a client and made my Loan Officer look good in the eyes of the Realtor... by providing solid customer service

Jun 18, 2008 09:46 AM

Jason Sardi

Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC

Your Agent for Life

While I agree with what everyone is saying here, I'm pretty sure it is illegal because we aren't Credit Reporting Agencies. I could be wrong, but I'm willing to bet I'm not.

Jun 19, 2008 05:10 AM

Jason, looks like we will disagree on this one. FACTA also covers information providers. And while we are nor CRA or the provider we use the "information" in underwriting,

Jun 19, 2008 05:16 AM

Joe - Interesting. I'm going to do some legwork on this. Actually, I hope I'm wrong:-)

Jun 19, 2008 05:28 AM

Jason, I also have a call into the legal department

Jun 19, 2008 05:34 AM

Let me know man, now I'm very curious.

Jun 19, 2008 06:03 AM

Update....... legal wants to have a signed request that they asked for it....... The worry is that if the client loses it and their information gets out there we may be at risk. So black out your codes and their social on the report. I mean it sounds far fetched, but I can see the point in todays society that we could have a little legal exposure

Jun 19, 2008 06:14 AM

Thanks Joe. Actually, that's policy around here as well.

Jun 19, 2008 06:56 AM

Understand and I always black out my codes, but my question is since we also give them a copy of the sign disclosures and at closing there is always a new credit application to be resigned and all these documents have their social..... ahhhhh never mind

Jun 19, 2008 09:00 AM

Eddie Reed

Guaranty Bank and Trust Co. - Hernando, MS

MRMS, CRMS

I agree that we must disclose credit information to the customer such as the score disclosure but i'm not sure that we have a legal obligation to provide the complete credit report. I believe if it came down to a legal matter things might come into play such as did the customer pay for the report? (If so they should be given a copy) Do we have a legal liability under current privacy laws (GLB) to keep the information under the strictest of security (I agree with Joe and his legal dept on showing the customer requested a copy and one was provided as a CYA measure). I always ask if they would like a copy and then provide one if the customer chooses.

Good topic.

Jun 19, 2008 05:27 PM

Lol, agreed man ...

Jun 20, 2008 12:43 PM

Bo Hussung

Bell Title /Triserv LLC - Nashvle, TN

I know it is considered SOP, but thee seems to be soem fuzzy areas around this because until the loan closes, the borrower has not paid for it and it seems to me, if I read the staute correctly, the borrower has to pay for it, which in almost all cases is included as a line item on the HUD!...so if that is the case, then voila, there is a report with the codes marked. Now as far as I am concerned, I think a borrower deserves it, nonetheless, it is proprietary, because ultimately the bill is paid for by the broker/ lender and the contract is with the credit agency, not the borrower.....so tread lightly here.....good posts!

Jun 20, 2008 03:15 PM

Loreena and Michael Yeo

3:16 team REALTY ~ Locally-owned Prosper TX Real Estate Co. - Prosper, TX

Real Estate Agents

Joe, I've always thought that when asked, that it shall be provided. I know my clients receive them through my preferred lenders. It gives them a chance to see if things are still looking like it should.

Jun 21, 2008 05:57 AM

Delete my account

no one - Central, AZ

Delete My Account

It is more of a good standard than a hard fast law. Under the FACTA Act you have to disclose to the borrower the reporting agencies that were used in the final determination of the loan. This form is usally in the the 3 Day Disclosure pack that is sent out by the lender (at least in ours). I could be wrong on this, but that is the way I have always understood it.

I give a copy to my clients at close if the pay for it up front. I have nothing to hide, and want us all to be on the same page. I do not council them on what is there, but give them an idea of what most lenders look at, and go from there.

Hope that you are having a great summer!

Aug 04, 2008 05:46 PM

If your client ask, Do you give them a copy of their credit report?????

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