How Far Back Do Background Checks Go Texas Association Of Realtors

questionable background checks

A questionable new industry standard

We accept a new "manufacture standard" making an appearance for both Appraisers and Realtors®. Those of us who do piece of work with Appraisal Management Companies (AMCs) and complete Broker Price Opinions (BPOs) are existence asked to submit to and pass mandatory criminal groundwork checks – "to ensure that every person who conducts business on their clients' behalf observes the highest of standards and professional ethics," according to an email from the LSI Division of Lender Processing Services (LPS).

This isn't exactly new in terms of many states' professional licensing protocol, or fifty-fifty the majority of most companies hiring policies these days. It is a subpar procedure in the way that the policy is being implemented, and possibly a violation of the Fair Credit Reporting Act (FCRA).

States which require criminal background checks for licensees utilize their own State Bureau of Investigations and FBI databases to decide if there take been whatever felony or misdemeanor convictions. Some states will also look at court records for boosted information, if available online.

The current requests for background checks

The current requests many of u.s.a. have been receiving for background checks, from companies similar LPS/LSI (a preferred valuation partner of National Association of Realtors' (NAR's) Realtors Holding Resource (RPR), and thereby those Realtors® who hold NAR's Broker Price Opinion Resource (BPOR) certification) along with DataQuick, are being conducted by third parties, such every bit LexisNexis and Sterling.

At least as far as LPS/LSI is concerned, in their email, which includes a link to LexisNexis, and explains that iv questions will take to be answered to verify identity, which product to select (there was only one option), it too says what LPS/LSI wants SSN verification, a felony/misdemeanor record bank check, a national criminal record file check, and a global sanction search.

All the same, upon getting ready to pay for (aye, Realtors® and Appraisers have to fork over the bucks for these) these verifications and searches, LexisNexis has a disclaimer/say-so every bit to what they themselves may be pulling up, looking into, whatever, and it'south a hell of a lot more than mere criminal records.

Reading the fine (and questionable) print

Co-ordinate to the LexisNexis website, items may include; "data regarding my credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or manner of living. This report may exist compiled with data from credit bureaus, court tape repositories, section of motor vehicles, past or present employers and educational institutions, governmental occupational licensing or registration entities, concern or personal references, and any other source required to verify information that I have voluntary supplied. I understand that I may request a complete and authentic disclosure of the nature and telescopic of the background verification; the extent such investigation includes information begetting on my grapheme, general reputation, personal characteristics, or mode of living."

It is ane huge jump from requiring criminal records and verifying identity to potentially pulling credit, other courtroom records, DMV records, speaking with past employers, personal references, obtaining schoolhouse records, and digging into one's graphic symbol, reputation, or style of living – a person'south way of life (which is quite subjective – does i become disqualified if their "way of life" is gay, anti-semitic, or nudist?).

While LexisNexis has a overnice CYA in the course of a checkbox authorizing the become-ahead and appears to be in compliance with current laws, LPS/LSI has failed miserably at doing so – enter the potential FCRA issues. LPS/LSI did non, in the e-mail sent out to current providers similar myself, requite notice of the policy change, i.e. that Appraisers and Realtors® would be subject to background checks and ultimately accept an investigative consumer report compiled equally a condition of employment, separate from any other information, nor did they request whatever kind of permission to obtain said reports, written, verbal, or electronic.

Time for Appraisers and Realtors® to defend themselves

Per the FTC, employers as well have obligations under the Fair Credit Reporting Human activity. When background checks are conducted for employment purposes, including, hiring, advocacy, or maintaining an employer/employee human relationship, a disclosure must be given out, and it must exist split up from other information. Consent from the employee has to be obtained, preferably in writing. If investigative consumer reports will be used, an additional notice has to exist given out that ane may be generated, and that the employee has a right for additional disclosures and the telescopic and summary of the report.

In that location are times when Appraisers and Realtors® need to join forces and become advocates for ourselves. This is i of those times. We take to know our rights (and we practice have them) instead of rolling over and taking it, because something may be becoming a new standard in the industry.

Katie Cosner, occasionally known as Kathleen, or KT, is a Realtor® with Cutler Existent Manor and is active in her local Board of Realtors® on the Equal Opportunity & Professional Development Committee. She has been floating around online for a number of years, and is on facebook equally well equally twitter. While Katie has a few hardcore beliefs, 3 in the Real Estate Earth to live and die past are; didactics, ideals, and the law - insert random quote from "A Few Good Men" here. Katie is likewise an gorging Cleveland Indians fan, which actually explains quite a bit of her… quirks.