What is the timeframe for a Consumer Reporting Agency to investigate disputed credit reporting items according to the FCRA?

The Fair Credit Reporting Act (FCRA) establishes that a Consumer Reporting Agency (CRA) has a maximum of 30 days to investigate a disputed item on a consumer's credit report once the dispute has been filed. This timeframe is crucial as it ensures that consumers have the ability to rectify inaccuracies in their credit reports in a timely manner. If the CRA cannot verify the disputed information within this 30-day period, they are required to remove the item from the credit report.

Understanding this timeframe is essential for mortgage loan officers, as it impacts the creditworthiness of potential borrowers and can influence lending decisions based on the accuracy of credit reporting. Consumers must also be aware of their rights under the FCRA, including the right to dispute inaccuracies, which can significantly affect their borrowing capabilities. The other options exceed this 30-day limit, thus making them incorrect in the context of the FCRA's regulations.