I have heard that some lenders are using Borrower Authorizations to pull credit from mortgage loan files that have long closed (a year or more), pulling the credit then calling the borrower saying they were preapproved. Is this legal? I was always under the understanding that the authorization was only good for that particular transaction.

Written authorization isn't a requirement in the first place. But you must have a valid business reason to do this. To review their continued qualification or to skip trace on existing accounts are valid reasons. To prescreen for another credit offer, no.

I think Gowen is on point on this one.

Thank you for your quick response!