real estate finance - full book (500 pgs)

Real estate finance full book(500 pgs)

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Unformatted text preview: sions within the past 5 years. If either have occurred more than 5 years ago, many lenders will require that the applicant has established a record of god credit. All liens, judgments, and accounts that have gone to collection must have been satisfied or paid in full. 2. 3. 4. 5. If a person has any of these entries in his or her report, they are said to have derogatory credit information. This does not always mean that the Person may never get credit, but that the applicant may have to provide a satisfactory written explanation stating the reason for the late or missed payments. When dealing with a lender, it is not uncommon to find that many of the lenders will flat discuss a credit report with an applicant until the applicant has received or has secured a copy of his or her credit report. The reason for this is that many lenders feel that if they discuss the credit prior to the applicant having a copy of the report, they then become a Credit Reporting Agency and must meet the requirements of the Fair Credit Reporting Act as it relates to a credit reporting agency. Some lenders will even take this a step further and will not in any way discuss a credit report. Normally, if the lender will not discuss the report they will notify the applicant that they have received the report and there is information in the report that needs explaining. They will advise the applicant and/or co–applicant to contact the credit reporting agency for details. A possible reason for some lenders to adopt this policy is that many of the agreements between the credit reporting agencies and their buyers does not allow them to discuss any items on the report, but to refer all questions and explanations to the credit reporting agency. A possible second reason for their reluctance to discuss the report is that Section 610 Conditions of Disclosure to Consumers in paragraph (c) states that “any consumer reporting agency shall provide trained personnel to explain to the consumer any information furnished to him pursuant Dynasty School (www.dynastySchool.com) 1...
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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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