A mortgage lender discovers that a credit report they obtained contains information about a different person with a similar name and Social Security number. The lender has already made a credit decision based on this mixed file. The lender should:
Correct Answer
A) Immediately notify the consumer and re-evaluate the application
Under FCRA Section 607, when a lender discovers a mixed file or identity error that affected their decision, they have a duty to act reasonably. This includes notifying the affected consumer and re-evaluating the decision based on accurate information, as the original decision was based on information that doesn't pertain to the actual applicant.
Why This Is the Correct Answer
Under FCRA Section 607, when a lender discovers a mixed file or identity error that affected their decision, they have a duty to act reasonably. This includes notifying the affected consumer and re-evaluating the decision based on accurate information, as the original decision was based on information that doesn't pertain to the actual applicant.
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A Coast Guard member on active duty under Title 14 requests SCRA mortgage protections. The lender claims SCRA only applies to Army, Navy, Air Force, and Marines. How should this request be handled?
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A mortgage company processes applications for both covered and non-covered loans. An applicant applies for a $50,000 home improvement loan not secured by a dwelling, then later applies for a $200,000 purchase mortgage. How should these be handled for HMDA reporting?