What is the term used for an organization that collects and maintains financial information on individuals for credit evaluation?

The term used for an organization that collects and maintains financial information on individuals for credit evaluation is "Consumer Reporting Agency." These agencies compile credit reports that reflect an individual's credit history, including their payment behaviors, outstanding debts, and credit utilization. This information is essential for lenders, as it helps them assess the risk associated with extending credit to a prospective borrower. The data compiled by consumer reporting agencies is also used to calculate credit scores, which play a significant role in determining loan terms and interest rates.

Understanding the role of these agencies is crucial in the mortgage industry, as it directly impacts loan approvals and the types of products available to consumers. They ensure that lenders have access to reliable and structured information, thus promoting responsible lending practices and protecting both borrowers and lenders in the financial marketplace.