Updated over 11 years ago on . Most recent reply
Can A Note Buyer Legally Obtain A Credit Report?
We are about to make an offer on a couple notes that did not include a credit report on the investor who bought a loaded rental. Considering its an important part of evaluating the repayment of the note, and correct me if I am wrong, are we able to pull their credit report as a potential investor before we buy a note?
Section 604 (a)(3)(E) & (F) of the Fair Credit Reporting Act states:
item subsection “E” says…
Intends to use the information as a potential investor or servicer, or current insurer, in connection with a valuation of, or an assessment of the credit or prepayment risks associated with, an existing credit obligation
In addition, subsection “F” says…
Otherwise has a legitimate business need for information in connection with a business transaction that is initiated by the consumer or to review an account to determine whether the consumer continues to meet the terms of the account.
The full document can be found here; http://www.consumer.ftc.gov/sites/default/files/ar...
Does anyone have any instances they could not or should not do this? All replies & comments are appreciated!