Introduction:
We are committed to providing fair and responsible lending services. As a licensed mortgage broker, we comply with all applicable federal and state laws, including the Fair Credit Reporting Act (FCRA) and the Equal Credit Opportunity Act (ECOA).
Purpose of Credit Reports:
We obtain credit reports from consumer reporting agencies (CRAs) to:
- Assess an applicant’s creditworthiness and financial stability.
- Verify information provided on the loan application.
- Determine eligibility for specific loan programs.
- Lenders’ set appropriate loan terms and interest rates.
Obtaining Credit Reports:
We will only obtain credit reports with the written consent of the applicant. We will not obtain credit reports from unauthorized sources or use them for any purpose other than those outlined in this policy.
Fair Credit Reporting Practices:
We will comply with all provisions of the FCRA, including:
- Providing applicants with a copy of their credit report and a notice of their rights under the FCRA.
- Investigating any disputes concerning the accuracy or completeness of credit report information.
- Taking corrective action if any errors are found.
- Avoiding the use of discriminatory credit score models.
Sharing Credit Report Information:
We will only share credit report information with authorized parties, such as lenders, investors, and service providers, as necessary for the processing and approval of the loan application. We will not share credit report information for any other purpose without the applicant’s consent.
Security of Credit Report Information:
We will maintain reasonable safeguards to protect the confidentiality and security of credit report information. This includes:
- Limiting access to authorized personnel only.
- Using secure storage and transmission methods.
- Disposing of credit reports securely when no longer needed.
Applicant Rights:
Applicants have the following rights under the FCRA:
- To receive a free copy of their credit report once every 12 months from each of the three major credit bureaus.
- To dispute any errors on their credit report.
- To receive a copy of any credit report used in a credit decision that denies them credit.
We encourage applicants to review their credit reports regularly and to contact us if they have any questions or concerns.
Effective Date:
This policy is effective as of Jan 1, 2021. We reserve the right to amend this policy at any time.
Contact Information:
For any questions or concerns regarding this policy, please contact us.
Additional Information:
This policy is intended to provide general information only. It does not constitute legal advice. You should consult with an attorney if you have any questions about your rights under the FCRA or ECOA.