real estate finance - full book (500 pgs)

Borrowers with scores above 800 had only a 1 in 1293

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Unformatted text preview: credit. The law that affects the reporting of credit information is the Fair Credit Reporting Act of 1971. Usually, the credit history of a borrower is reported to the lender or originator by the use of a Standard Factual Data Credit Report. The act guarantees consumer rights relating to credit information about prospective borrowers' rights to information about their own credit. Three main credit bureaus are used, although several smaller agencies exist. To run a credit report it is necessary to have the written authorization of each person. The nation's largest credit bureaus operate services that sell credit information to authorized parties. Direct marketers who pitch credit card offers, catalog sales firms, and others may purchase the list of names and addresses of consumers contained in the credit report database of a credit bureau. They do not, however, sell specific credit information–a credit report–without specific authorization from the actual consumer. To get an actual credit report and meet the guidelines of the laws that pertain to credit, the mortgage broker must have written authorization from the person. One spouse cannot sign to authorize a credit report on the other spouse. A friend or relative cannot authorize credit on a borrower. The only exceptions are the legal documents that the courts have established when one party can act for another, such as a power of attorney or guardianship documents. The mortgage loan broker must have an original signature in the file that authorizes the broker to run a credit report. The signed credit authorization should specify release of a copy of the authorization to the subsequent, actual lender, who will run the backup credit check. Some credit forms authorize more than just the credit check. They might Dynasty School (www.dynastySchool.com) 13-31 REAL ESTATE FINANCE include authorization for employment verification, bank account verification, and other items that need the signature of the borrower. Credit report bureaus charge various fees for obtaining a record of their information. The price for one individual or for a couple will...
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This note was uploaded on 12/30/2010 for the course SOC 101 taught by Professor Zhung during the Spring '10 term at Punjab Engineering College.

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