An MLO is reviewing procedures for a case where an MLO wants to pull a consumer report for curiosity before an application purpose exists. What is the proper handling?
Correct Answer
A) Use consumer reports only for a permissible credit purpose
Lines 76-80; 12 CFR Part 1022 summary. Consumer report use must connect to a permissible purpose, such as evaluating credit eligibility. Therefore, the correct response is "Use consumer reports only for a permissible credit purpose".
Why This Is the Correct Answer
Lines 76-80; 12 CFR Part 1022 summary. Consumer report use must connect to a permissible purpose, such as evaluating credit eligibility. Therefore, the correct response is "Use consumer reports only for a permissible credit purpose".
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Before the team acts on a branch training session, an operations lead must address ECOA Prohibited Practices. Which response is most defensible?
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The branch manager compares the file facts with FCRA Risk Based Pricing during a borrower follow-up call. Which conclusion is accurate?