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Renniks, the way I read 212 (which of course could be incorrect), the disclosure of the credit score needs to have the elements listed in 609(f), which are: the current score, the range of scores, the key factors, the date on which the credit score was created, who provided the score. Anyone else with an opinion this?

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No, if you do not currently receive [emphasis mine] the credit score along with the other information in the credit report, you will not have to change your practice.

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We were told by our regulator a number of years ago that we were not to disclose the name of the consumer reporting agency if our credit decision was based on information not obtained in a credit report.

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You were probably checking the FCRA box and providing the CRA information on the AAN in error when information other than the credit report caused the denial. There is a big difference between that and not disclosing the name of the consumer reporting agency that you normally use. There would be no reason not to tell an applicant what credit reporting agency that you use .

If it's a RESPA covered - you already do in the "required serice provider" disclosure anyway.

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The Notice to the Home Loan Applicant is separate from the credit score notice. The credit score notice is just that, the credit score. It might be a good idea to give the Notice to the HLA at application time and then give the score at closing. I don't know in what form to give the score...still trying to figure that one out.....

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My understanding is that Section 212 covers the Notice to the Home Loan Applicants and Section 311 covers the Risk Based Pricing Notice which I think is being referred to as the "Credit Score Notice" in this thread.

The Section 311 notice must be given if a bank uses credit scores in its credit making decision process, and MAY, based on a less than satisfactory credit score, offer the customer a product and/or pricing LESS FAVORABLE than its standard product/pricing.

I also heard in an ABA seminar (American Bar Association) that a bank that uses the Notice of Adverse Action properly when extending a counter-offer has met the requirements of Section 311 and does not have to give an additional disclosure. However, our attorneys are not really comfortable with that.

The ABA seminar included the counsel for the Fed that said an Interagency Statement was in the works to announce that the final rules have not been written (duh!) and that when they are, they will state the new mandatory compliance dates for all sections of FACTA except 217. Some of our FDIC regulated banks are also being told of an upcoming FIL that will state the same thing.

It's like CIP all over again. We'll probably get the reprieve....whatdya think, November 29th???

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"Credit Score Disclosure" ...in summary, it states that anyone who uses a credit score for a home loan shall provide to the customer 1)The information in subsection (f), which is the credit score information...

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If YOU use the credit score, you must provide the required information to the consumer(s).

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Jay-Risk,

If YOU use the credit score, you must provide the required information to the consumer(s). The consumer can also request the information from the credit reporting agency. At that time the CRA must also provide information (although in reading subsection (f), it appears the CRA has to supply more information than the "Users" (that's us) do. I think the CRA's can also charge a fee for this request..a "reasonable fee"...A notice of proposed rulemaking was just issued requesting comments on what should be a "reasonable fee."

We too use ARTA lending. Since it appears the CRA's will not be including/adding the "notice to Home loan Applicant" or "Credit Score Notice" as part of the regular process (even though I wish they would. I would even pay a small fee for it), we are looking at using the ARTA form or creating one of our own. Does anyone have any suggestions for efficiently filling in the Key Factors...I just don't see our staff taking the factors of the credit report and either typing or writing them on the disclosure...Now I haven't used the form in ARTA to know if there are check boxes giving factor choices and then the choices you've selected come up on the form or if you just have to type in your factors..The other issue I see with this is we only use the ARTA system for our closing document preparation, not during application (we have our early TIL/RESPA disclosures all printed out ahead of time). I would suspect we would do the same for this notice.

Is anyone considering creating their own (shouldn't be too hard) and having check boxes for the key factors. The staff could then just check off the ones that apply. Does anyone know how many possible or commonly used factors there are. I have left 2 messages with my Credit bureau rep this week to ask, but have received no call back...what a surprise!

Any suggestions/input?

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At a recent compliance seminar about the FactAct it was stated that if you don't use the credit score but it shows up on your credit reports, you better be able to prove to the examiners that you are not using it.

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I noticed a lot of posts stating only 4 key factors are to be listed; but, at the Kirchman seminar it was stated up to 5 factors may be required. The reg itself states that total number shall be limited to four with the exception that if one is due to "number of inquiries" that factor must be listed without regard to numerical limitation. Is anyone allowing for 5 key factors if this situation occurs?

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Can anyone tell me if we have to discolse credit score information on construction loans.

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I have been talking with Joker about these disclosures. I was wondering if anyone was going to retain proof the disclosure was forwarded to the customer or are you just going to have it in your procedures?

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