U.S. Court Revives Legal Split Over Whether an MI’s Higher Prices for Higher Risk Are an Adverse Action
November 10, 2005
A federal district court in Pennsylvania has ruled that a borrower who is offered a higher rate on a mortgage insurance policy based on an unfavorable credit report is not entitled to an adverse action notice under the Fair Credit Reporting Act if the borrower did not deal directly with the insurer. While defendant Radian Guaranty applauded the decision, it also brought back the uncertainty that was thought to have...