Lending & Mortgage Departments Share Credit Report

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Question:

Can our Lending department use a credit report from our mortgage department to offer a pre-approval Home Equity to a customer? Is there a section in the FACT Act that addresses this and can you refer me?

Answer:

It would not be covered under FACTA - but goes to the heart of the Fair Credit Reporting Act. You can only obtain and use a credit report on a consumer for permissible purposes as outlined in the FCRA. Obtaining and using a credit report in conjunction with a mortgage application is a permissible purpose. Using the same report for additional marketing purposes is not.

First published on BankersOnline.com 08/01/05