California Code of Regulations
Title 12 - Military and Veterans Affairs
Division 2 - Department of Veterans Affairs
Chapter 2 - Veterans' Farm and Home Purchases
Subchapter 1 - Eligibility and Qualifications
Section 309.2 - Credit Reports

The Department shall obtain credit reports on all applicants applying for loans on single family homes, condominiums, farms, mobile homes, construction loans, conditional commitment loans, deferred principal payment loans, loan transfers, second loans, assignments of existing contracts, home improvement loans, and purchases of repossessions which will be under a Cal-Vet loan contract. Credit reports shall be ordered on both veteran and non-veteran applicants. A credit report shall be ordered on the applicant and spouse, if married. The Department may charge a fee to cover the cost of the credit report, which may be included in the Loan Origination Fee. The Department shall notify the applicant of any adverse credit reports. If the applicant disagrees with the information contained in the credit report, the Department shall refer the applicant to the credit reporting agency. The Department shall hold the loan application for thirty (30) days, from the date the Department refers the applicant to the credit reporting agency, while the applicant is pursuing any disagreement with the credit reporting agency.

1. New section filed 11-12-91; operative 12-12-91 (Register 92, No. 7).
2. Amendment filed 4-6-98; operative 5-6-98 (Register 98, No. 15).
3. Amendment filed 10-30-2000 as an emergency; operative 10-30-2000 (Register 2000, No. 44). A Certificate of Compliance must be transmitted to OAL by 2-27-2001 or emergency language will be repealed by operation of law on the following day.
4. Certificate of Compliance as to 10-30-2000 order transmitted to OAL 2-23-2001 and filed 4-6-2001 (Register 2001, No. 14).

Note: Authority cited: Section 700, Military and Veterans Code. Reference: Section 987.56, Military and Veterans Code.