Application Denied - Disclosure in File

Answered by:

Question:

Do examiners expect to see a copy of the credit score disclosure (notice to home loan applicants) in the file of a denied application?

Answer:

Answer by Randy Carey:Yes. While the regulation does not specifically address retention of a copy, proof of delivery is most commonly accomplished through the retention of a copy of the information provided to the applicant. The principle behind the disclosure is to inform the applicant of their current credit scores so that they can determine whether or not there may be errors. This is especially important in the case of denied applications.

Answer:

Answer by David Dickinson:Whether your local field examiners will expect to see a copy of the Notice to Home Loan Applicants will depend on their opinion - I can't answer that. However, there are no record retention requirements in this section of the FACT Act. I'm sure you don't keep copies of every Privacy, TISA, EFA and EFT disclosure you provide to your customers. Why? Because there's no record retention requirement. You need to be able to demonstrate your system of delivery, but you are not required to maintain a copy of the Notice to Home Loan Applicants.

First published on BankersOnline.com 10/15/07