Answer:
You use that section when the decision was based in part on information from an outside source such as a landlord, utility company, a local trade reference, etc.
First published on BankersOnline.com 5/14/12
Adverse Action- Info Obtained from Outside Source
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Question:
My question deals with Adverse Action Notices...section # 5 the disclosure of use of information obtained from an outside source. I fully understand the first block for denials based on a credit report and all the information that now must be included. I am confused at the last box that is saying our decision is based on information obtained from another source other than a credit reporting agency. If we have to decline a client for the condition of their real estate and we received that information through an appraisal report should we be utilizing that box? Again this is when the denial decision was NOT based on any part of a credit report or credit score?
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