FCRA and applying for a mortgage

In reference to the FCRA, can derogatory information which is beyond the 7 year statute of limitations (10 yrs for BK) be included in a credit report when applying for a credit transaction in excess of $150,000 (i.e. a mortgage)?

I am not certain if the "exempted cases" refer to the fact that all derogatories, no matter how old, will be listed on a credit report in conjunction with a large loan or if derogatories on large credit loans can be listed forever.

In other words, when I apply for a mortgage, what will the bank see, a good history for the last 4 years or all of the derogs which fell off of the report and are 9-10 years old?

FCRA excerpt:
605. Requirements relating to information contained in consumer reports [15 U.S.C. § 1681c]

(a) Information excluded from consumer reports. Except as authorized under subsection (b) of this section, no consumer reporting agency may make any consumer report containing any of the following items of information:

(1) Cases under title 11 [United States Code] or under the Bankruptcy Act that, from the date of entry of the order for relief or the date of adjudication, as the case may be, antedate the report by more than 10 years.

(2) Civil suits, civil judgments, and records of arrest that from date of entry, antedate the report by more than seven years or until the governing statute of limitations has expired, whichever is the longer period.

(3) Paid tax liens which, from date of payment, antedate the report by more than seven years.

(4) Accounts placed for collection or charged to profit and loss which antedate the report by more than seven years.(1)

(5) Any other adverse item of information, other than records of convictions of crimes which antedates the report by more than seven years.


(b) Exempted cases. The provisions of subsection (a) of this section are not applicable in the case of any consumer credit report to be used in connection with

1) a credit transaction involving, or which may reasonably be expected to involve, a principal amount of $150,000 or more;


(2) the underwriting of life insurance involving, or which may reasonably be expected to involve, a face amount of $150,000 or more; or

(3) the employment of any individual at an annual salary which equals, or which may reasonably be expected to equal $75,000, or more.