This part changes an older law about credit reports. A firm asks for your report when you want a home loan. This part says the credit bureau may not then send a report about you to other firms. There are a few cases where it still may.
The document says “means”Who acts: CongressHow: statuteSec. 2 in the PDF
What the document says
“``(iii) Residential mortgage loan.--The term `residential mortgage loan' has the meaning given the term in section 1503 of the S.A.F.E. Mortgage Licensing Act of 2008 (12 U.S.C. 5102).”
Subparagraph (A) of the paragraph added to section 604(c) of the Fair Credit Reporting Act defines four terms for use in that paragraph: credit union, insured depository institution, residential mortgage loan, and servicer. Each definition gives the term the meaning it already has in another statute, named by citation: the Federal Credit Union Act, the Federal Deposit Insurance Act, the S.A.F.E. Mortgage Licensing Act of 2008, and the Real Estate Settlement Procedures Act of 1974. Those statutes are not indexed here, so the definitions themselves are not recorded.
What the document actually says
“``(iii) Residential mortgage loan.--The term `residential mortgage loan' has the meaning given the term in section 1503 of the S.A.F.E. Mortgage Licensing Act of 2008 (12 U.S.C. 5102).”
That sentence, in plain words
The new words say what a home loan means here. They point to an older law for the answer.
What this is about
The new part uses four terms. They are credit union, insured bank, home loan, and loan servicer. Each one is spelled out in an older law. The new part just points to those laws.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “may not”Who acts: consumer reporting agenciesHow: statuteSec. 2 in the PDF
What the document says
“``(B) Limitation.--If a person requests a consumer report from a consumer reporting agency in connection with a credit transaction involving a residential mortgage loan, that agency may not, based in whole or in part on that request, furnish a consumer report to another person under this subsection”
The paragraph added to section 604(c) of the Fair Credit Reporting Act (15 U.S.C. 1681b(c)) provides that where a person requests a consumer report in connection with a credit transaction involving a residential mortgage loan, the consumer reporting agency may not furnish a consumer report to another person under that subsection based in whole or in part on that request. The prohibition is subject to the conditions set out in the two entries below.
What the document actually says
“``(B) Limitation.--If a person requests a consumer report from a consumer reporting agency in connection with a credit transaction involving a residential mortgage loan, that agency may not, based in whole or in part on that request, furnish a consumer report to another person under this subsection”
That sentence, in plain words
A firm asks a credit bureau for your report to help with a home loan. The bureau may not use that ask to send a report about you to someone else.
What this is about
The rule is about what a credit bureau may hand out. The next part sets out when it still may.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “requires”Who acts: consumer reporting agenciesHow: statuteSec. 2 in the PDF
What the document says
“``(i) the transaction consists of a firm offer of credit or insurance; and”
The limitation added to section 604(c) of the Fair Credit Reporting Act does not apply where two things are both true. The first, quoted here, is that the transaction consists of a firm offer of credit or insurance. The second is a condition on the other person, and one way to meet it is that the person has submitted documentation to the agency certifying that the person has the authorization of the consumer to whom the report relates, under paragraph (1)(A) of that subsection.
What the document actually says
“``(i) the transaction consists of a firm offer of credit or insurance; and”
That sentence, in plain words
The deal has to be a firm offer of credit or insurance.
What this is about
This is one of two tests. Both must be met. The other firm must also show the bureau a paper. The paper says you said yes.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “requires”Who acts: consumer reporting agenciesHow: statuteSec. 2 in the PDF
What the document says
“``(II)(aa) has originated a current residential mortgage loan of the consumer to whom the consumer report relates;”
The second way for the other person to meet the condition set out in the paragraph added to section 604(c) of the Fair Credit Reporting Act is an existing relationship with the consumer. The person qualifies if that person originated a current residential mortgage loan of the consumer, is the servicer of such a loan, or is an insured depository institution or credit union that holds a current account for the consumer. The requirement that the transaction be a firm offer of credit or insurance still applies.
What the document actually says
“``(II)(aa) has originated a current residential mortgage loan of the consumer to whom the consumer report relates;”
That sentence, in plain words
The other firm made your home loan and it is still going.
What this is about
This is a second way to pass the test. The firm may also be the one you pay each month. Or it may be a bank or credit union where you have an account.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The paragraph this section adds to section 604(c) of the Fair Credit Reporting Act: the four terms it defines, the limitation it places on a consumer reporting agency, and the two conditions that have to be met before a report may be furnished anyway.
The four definitions are recorded as one entry rather than four, because each does the same thing: it points to a term already defined in another statute. The individual wording of each pointer is in the quoted section.
The section works by adding text to section 604(c) of the Fair Credit Reporting Act (15 U.S.C. 1681b(c)). That statute is not indexed on this site, so what the rest of subsection (c) permits or requires, and what paragraph (1)(A) of it says about a consumer's authorization, is not recorded here. The Federal Credit Union Act, the Federal Deposit Insurance Act, the S.A.F.E. Mortgage Licensing Act of 2008 and the Real Estate Settlement Procedures Act of 1974 are not indexed here either, so the definitions the new paragraph borrows from them are not reproduced.
