The Fair Credit Reporting Act (FCRA) restricts the permissible purposes for which a credit report can be obtained. A mortgage loan originator may only pull a credit report for a bona fide mortgage loan transaction. Pulling a credit report for a non-mortgage transaction, even with the consumer’s consent, is not a permissible purpose.
“A person may obtain a consumer report only if the report is to be used for a permissible purpose under the FCRA. Permissible purposes include credit transactions initiated by the consumer.”
— 15 U.S.C. § 1681b; FCRA
[References:, , FTC, Using Consumer Reports: What Landlords Need to Know, , SAFE MLO National Test Study Guide, , ]
Submit