Why does CBA ask for information on funders?
In our discussions with the credit bureaus, they are most concerned about receiving data from small lenders with respect to credibility and stability of organization. Specific concerns relate to 1) Uncle Harry will create a file to help his extended family get good credit; and 2) the creditor will disappear and not be available to reverify consumer disputes. The fact that community lenders receive multiple years of underwriting (i.e. not just funding, but a level of due diligence) by trusted government and foundation entities was the best way to establish credibility for community lenders and differentiating community lenders from other small lenders providing predatory and subprime loans.
