[Congressional Record Volume 142, Number 141 (Thursday, October 3, 1996)]
[Senate]
[Page S12349]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




     CLARIFICATION OF THE CREDIT REPORTING SECTION OF THE OMNIBUS 
                    CONSOLIDATED APPROPRIATIONS ACT

 Mr. MACK. Mr. President, I rise today to clarify a provision 
included in the credit reporting section of the Omnibus Consolidated 
Appropriations Act.
  Section 2403(a) clarifies existing law with respect to the 
``permissible purposes'' for which a consumer report may be obtained 
under the Fair Credit Reporting Act. The provision establishes that 
purchasers and servicers are permitted to review a borrower's credit 
report in connection with the decision of whether to purchase a loan 
obligation and/or its servicing. This allows a purchaser or other 
investor to value more accurately a portfolio of loans based on the 
current credit characteristics of the borrowers of the underlying 
obligations. Servicers can also use the information to better value 
servicing rights that they are considering purchasing. In addition, the 
provision would allow a current loan insurer to use credit reports in 
assessing its existing risk. By reducing uncertainty in the secondary 
markets, I am hopeful that consumers will be well served by lower 
prices. I thank the Chair for this opportunity to elaborate upon this 
small provision.

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