Opinion ID: 3026315
Heading Depth: 4
Heading Rank: 1

Heading: a denial or cancellation of, an increase in any

Text: charge for, or a reduction or other adverse or unfavorable change in the terms of coverage or amount of, any insurance, existing or applied for, in connection with the underwriting of insurance[.] 15 U.S.C. § 1681a(k)(1)(B)(i). The Act defines “consumer report,” so far as relevant here, as: any written, oral, or other communication of any information by a consumer reporting agency bearing on a consumer’s credit worthiness, credit standing, [or] credit capacity . . . which is used or expected to be used or collected in whole or in part for the purpose of serving as a factor in establishing the consumer’s eligibility for . . . credit or insurance to be used primarily for personal, family, or household purposes[.] 15 U.S.C. § 1681a(d)(1)(A). The District Court noted that the transaction at issue in this case was between Radian, the mortgage insurer, and Countrywide, the lender. It cited approvingly the decision in Hinton v. Federal National Mortgage Ass’n, 945 F. Supp. 1052 (S.D. Tex. 1996), where the court, on facts substantially similar 7 to those here, stated that the lender is the insured, not the borrower, because the contract is between the mortgage insurer and the lender. Id. at 1055. The Hinton court held that the borrower was an incidental beneficiary who had no cause of action. Id. at 1058. The District Court in this case granted summary judgment for Radian because it found that Radian’s insurance relationship was with Countrywide and not the Whitfields.