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Unformatted text preview: nts, or convictions for a crime which from the date of disposition, release, or parole, happened more than 7 years before the date of the requested credit report may not be included. Or any other adverse action that has happened more than 7 years ago may not be included. 6. As was mentioned in the first part of this discussion, three restrictions only apply to loans with a principal balance of less than $50,000. Many of the credit reporting agencies follow the above guidelines for all loans whether they are more or less than $50,000. In some cases, a local credit bureau will not report any information about arrest,
indictment, or conviction for a crime. From this brief discussion one can see that the credit history could be an area that may delay the process of a loan application, particularly if the lender does not discuss any information on a credit report. A possible solution to the problem is to have your buyer, prior to completing a loan application, go to the credit reporting agency in your city and request to check the credit information that is on file. The consumer has a right to view the information with certain exceptions as per Section 609, Disclosure to Consumers, of the Act. It should be noted that the consumer will not normally be given a copy of his or her credit report, but will be supplied with an abstract. The abstract will have stamped or noted on it in some manner the following statement: Not For Credit Granting Purposes. In this way the person, before going to loan application, can find if there is any derogatory information or credit information that is not theirs on the report and correct or give an explanation before the lender requests a credit report. Also, they could take the abstract to loan application and when the person taking the application asks about credit, the applicant could give the lender a copy of the abstract. It should be noted that the lender will still order a credit report, but possibly if the lender questions any entry on the abstract, the lender could ask for clarification at the time of application rather than waiting to receive the credit report and having the buyer make explanations at the credit reporting agency. On...
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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.
- Spring '10