The reseller agreement from the repositories states that each purchased credit report is for one-time-use only. This means that every time the credit report is viewed by another end user, such as Fannie Mae or Freddie Mac, a secondary use fee must be paid. In essence, the credit report must be “re-purchased” each time some other entity looks at it, even if it is the exact credit report you already pulled and paid for.
Secondary use of consumer credit data occurs when the originating end user (lender or broker) provides the consumer credit report, or any portion thereof, to a third party business entity or person (typically a sponsoring lender).
The 3 national credit bureaus (Equifax, Experian, and TransUnion) require that all credit reporting agencies comply with specific procedures to track and report Secondary Use of consumer data by lenders. These Secondary Use Inquiries (SUI) policies were designed to address consumer privacy rights, Fair Credit Reporting Act (FCRA) compliance, and data security issues.
WHAT ARE SOME SITUATIONS WHERE A SECONDARY USE FEE WILL BE CHARGED?
If your CRC charges a fee to use a Reference Number in Loan Product Advisor, you will be charged that fee for each Reference Number you submit.
If you submit/resubmit a loan to Loan Product Advisor with the Merged Credit box selected, the CRC may charge you for a new merged credit report unless the Reference Number is also entered.
You will incur a fee for each request of fresh credit in Loan Product Advisor, and the credit repositories will identify you inquiry on the borrower's credit report. If the new credit has a negative impact to the assessment, you cannot subsequently request to use the original credit. Check with you selected CRCs for the price and applicability of their merged credit fees. PLEASE NOTE: The repositories will identify all entities that view a borrower's credit data in Loan Product Advisor on the borrower's credit report.
No; the reissue of a consumer credit report to a lender only effectively transmits the report data to the lender, so the consumer’s credit report is not re-accessed by the receiving party. In addition, all secondary use inquiries are considered to be “soft” inquiries which by nature do not affect the consumer’s score.