Question:
Is it permissible for a mortgage lender to obtain verbal authorization from a mortgage loan applicant to pull credit?
Answer:
Yes, it is permissible for lenders to obtain verbal authorization from the applicant to pull credit. However, if a lender chooses this route, it is recommended that the lender require its mortgage loan originators to document the date and time they received such verbal authorization either into the loan origination system or some other written record.
It is not uncommon for applicants who do not complete the loan application process and do not remember authorizing the credit pull to file a complaint. In this such instances, referencing a written record of when authorization was provided and to whom it was provided can be beneficial for a mortgage lender.
