Click to return to BOL home page



July 29
W-9, W-8BEN and W-8 BENE: IRS issues new forms and new rules;
Deborah Crawford

July 31
ACH Security Framework Rule - Small Rule, Big Implications;
Rayleen Pirnie

August 6
Part I
Flood Insurance: Requirements and Best Practices
A Two-Part Companion Webinar Series;
David Dickinson and Jerod Moyer

August 12
A to Z of Reg E;
Andy Zavoina

August 13
Part II
Flood Insurance: Requirements and Best Practices
A Two-Part Companion Webinar Series;
David Dickinson and Jerod Moyer



Topic Options
#1667856 - 02/21/12 02:04 PM Notice to Home Loan Applicants
Fluffy Is Me Offline
Platinum Poster

Registered: 09/08/09
Posts: 823
I am working on FCRA. I think I remember a notice had to go out if we run a credit report, whether denied or not. I can't find it in the reg. anymore. I keep finding Adverse Action, but not just a notice of the info in the credit report. Am I remembering something that isn't really there?
_________________________
If you go around creating storm clouds, don't complain about all of the rain!

Top
#1667955 - 02/21/12 04:15 PM Re: Notice to Home Loan Applicants [Re: Fluffy Is Me]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 49440
Loc: Galveston, TX
Section 609(g)
_________________________
The opinions expressed are my own, take them or leave them.

Top
#1668081 - 02/22/12 06:26 AM Re: Notice to Home Loan Applicants [Re: Fluffy Is Me]
Fluffy Is Me Offline
Platinum Poster

Registered: 09/08/09
Posts: 823
Thank you. I don't even want to tell you how many times I went through that reg., and missed that!
_________________________
If you go around creating storm clouds, don't complain about all of the rain!

Top
#1668385 - 02/22/12 01:58 PM Re: Notice to Home Loan Applicants [Re: Fluffy Is Me]
Fluffy Is Me Offline
Platinum Poster

Registered: 09/08/09
Posts: 823
Here's another question. When a customer applies for an overdraft protection line of credit, our lenders pull the credit report, then send the Notice to Home App. That can't be correct, but not sure what should replace it.
_________________________
If you go around creating storm clouds, don't complain about all of the rain!

Top
#1668416 - 02/22/12 02:53 PM Re: Notice to Home Loan Applicants [Re: Fluffy Is Me]
Dan Persfull Offline
10K Club

Registered: 08/28/02
Posts: 40507
Loc: Bloomington, IN
The NHLA is only for consumer purpose loans that will be secured by 1-4 residential real property.

If you use risk based pricing they should be sending the appropriate risk based pricing notice or the applicable exception notice.

See Subpart H

http://www.bankersonline.com/regs/12-1022/12-1022-000.html
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Top
#1668643 - 02/23/12 06:51 AM Re: Notice to Home Loan Applicants [Re: Fluffy Is Me]
Fluffy Is Me Offline
Platinum Poster

Registered: 09/08/09
Posts: 823
We don't use risk based pricing. I can't find anything about a credit transaction, not secured by real property, needing a disclosure. I think some disclosure to the consumer would be required since we pull the credit report. The application states it, but don't we have to send them a disclosure, once we pull it, with their scores? Adverse action disclosures are out there, but not just plain notices.
_________________________
If you go around creating storm clouds, don't complain about all of the rain!

Top
#1668715 - 02/23/12 09:27 AM Re: Notice to Home Loan Applicants [Re: Fluffy Is Me]
Dan Persfull Offline
10K Club

Registered: 08/28/02
Posts: 40507
Loc: Bloomington, IN
If you do not use risk based pricing then there would be no "credit score" notice requirement for approved credit not secured by 1-4 residential real property.

For denials you would have to provide the credit score used in the decision on the AAN.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Top
#1668718 - 02/23/12 09:15 AM Re: Notice to Home Loan Applicants [Re: Fluffy Is Me]
Fluffy Is Me Offline
Platinum Poster

Registered: 09/08/09
Posts: 823
thanks Dan
_________________________
If you go around creating storm clouds, don't complain about all of the rain!

Top
#1668782 - 02/23/12 10:18 AM Re: Notice to Home Loan Applicants [Re: Fluffy Is Me]
RR Joker Offline
10K Club

Registered: 11/15/02
Posts: 16257
Loc: The Swamp
And be careful when you say you don't use RBP. If the lender takes into account credit, regardless of the score, and might bend the standard rate accordingly...in effect, you do RBP.
_________________________
My opinion only. Not legal advice.

You will never see what's inside of me - Five Finger Death Punch

Top


Moderator:  Jack/Pegasus, Mary Beth Guard