Answer:
There is no regulatory problem with asking a credit applicant to explain items on their credit report. Just make sure that this is done in a consistent manner to be sure that this does not lead to discriminatory practices. For example, if you ask a male for an explanation and make them a loan, but don't bother to ask a female and the regulators pull that denied file then you have big problems.
First published on BankersOnline.com 10/01/07