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BSA/AML Compliance: Writing the SAR Narrative
Ken Golliher

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HSA Basics
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Required Training for Loan Originators
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Overdraft Practices in Today's Regulatory Environment
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Managing Electronic Information - From A to Zettabyte
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#255454 - 10/12/04 12:52 PM credit score delivery timing
DeeQ Offline
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Registered: 12/04/02
Posts: 40564
Loc: I don't know!
We are proposing to send out the consumers' credit scores at the time of committment or denial.
When is everyone else sending them out???? Thanks.
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#255455 - 10/12/04 12:55 PM Re: credit score delivery timing
Bear Collector, CRCM Offline
Diamond Poster

Registered: 11/22/00
Posts: 1830
Loc: District of Columbia
Are you referring to the requirement under 609 of the FCRA for disclosure of credit scores by mortgage lenders?
BC
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#255456 - 10/12/04 12:56 PM Re: credit score delivery timing
DeeQ Offline
10K Club

Registered: 12/04/02
Posts: 40564
Loc: I don't know!
Yes
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#255457 - 10/12/04 01:18 PM Re: credit score delivery timing
Bear Collector, CRCM Offline
Diamond Poster

Registered: 11/22/00
Posts: 1830
Loc: District of Columbia
I have a meeting set up to discuss this next Monday. I understand that LaserPro has just issued a lengthly document regarding FACT Act disclosures and compliance, so as far as our Equity loans/lines are concered, I will need to see what LaserPro is offering. On the mortgage side, I need to look at their system and see what we can do. My feeling is that on the mortgage side, they should go out with the other disclosures (GFE, Initial TILA) and with denial letters. If we do a written committment, I agree that that would be the best place to send them, but I don't think we do that with all loans.
The Act states that if someone else gives the disclosures, (such as a broker?), we do not have to do it again. Have you determined how you will know that the score and the disclosure was already given in a particualr mortgage transaction?
BC
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#255458 - 10/12/04 01:18 PM Re: credit score delivery timing
Suzie Offline
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Registered: 04/17/02
Posts: 662
Loc: Far North
Spoke with a credit bureau rep yesterday & we can order, for a small fee, a Score Disclosure Letter, mailed by the cra directly to the consumer. This letter includes the Notice To Home Applicant & of course the credit bureau details. Little Devil, this would be done as soon as letter is ordered.

Isn't the cra obligated to provide the credit score detail? Of course if I pull a report they have no idea if it will be used for a 1-4 mortgage. As I lender, my obligation is the Notice to the Home Applicant, not the credit score detail, I think!!

Must this documentation be provided simultaneously?

Sorry, I have more questions than answers --
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#255459 - 10/12/04 01:58 PM Re: credit score delivery timing
DeeQ Offline
10K Club

Registered: 12/04/02
Posts: 40564
Loc: I don't know!
We always issue commitment letters, so I guess we would be safe to disclose it at that time...and of course with the denial notice...

Thanks both of you...
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#255460 - 10/12/04 05:44 PM Re: credit score delivery timing
Anonymous
Unregistered


Is this a section that will not have an implementing regulation? Or is it supposed to have one that is just not out in proposed form yet?

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#255461 - 10/12/04 07:28 PM Re: credit score delivery timing
Bear Collector, CRCM Offline
Diamond Poster

Registered: 11/22/00
Posts: 1830
Loc: District of Columbia
I am proceeding on the belief that there will be no implementing regulations for this part. At least, that is my understanding.
BC
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#255462 - 10/13/04 11:27 AM Re: credit score delivery timing
Moman Online
Gold Star

Registered: 07/13/04
Posts: 281
Loc: WA
Don't forget withdrawals and files closed for incompleteness - based on what is written above, those loans would escape the notificaiton if the notice was sent with the denial or committment letter.

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#255463 - 10/13/04 04:02 PM Re: credit score delivery timing
Bear Collector, CRCM Offline
Diamond Poster

Registered: 11/22/00
Posts: 1830
Loc: District of Columbia
That is why I was considering sending it with the initial disclosures, which are mailed within 3 days of application. I think that way we will get almost everyone. I still need to figure out how we are going to address those loans where the CB is obtained by someone else, like a broker. If the broker obtains the CB but we are the one who uses it, then we have to send the notice, correct?
BC
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#255464 - 10/14/04 02:14 PM Re: credit score delivery timing
Anonymous
Unregistered


A related question. Are customers required to sign a form indicating that they had received their scoring information?

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#255465 - 10/14/04 02:47 PM Re: credit score delivery timing
DeeQ Offline
10K Club

Registered: 12/04/02
Posts: 40564
Loc: I don't know!
We are having them sign and return a copy along with the other paperwork. I can't find any guidance, but we'll take the precaution anyway.
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#255466 - 10/14/04 03:38 PM Re: credit score delivery timing
Anonymous
Unregistered


Another related question. Is anyone working on the notification to the customer if they are approved at a rate or terms less favorable than the best rates available???

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#255467 - 10/14/04 04:24 PM Re: credit score delivery timing
Bullseye Online
Platinum Poster

Registered: 01/27/04
Posts: 943
Quote:

We are having them sign and return a copy along with the other paperwork. I can't find any guidance, but we'll take the precaution anyway.




Several department heads & I met regarding this earlier & I could not get them to even consider getting this signed when I couldn't show them a requirement. Some times I think it's best to take the extra step, but I guess we aren't going to get there.

Help me out though if you could. I know we have to provide the notice to home loan applicants for consumer purpose loans secured by a 1-4, but what do we have to provide with it? The score & who it came from? Or do we also need the range of scores, date created & etc.? I talked to our CRA and they told me they are not going to be doing anything in regards to this that they aren't already doing. So, I am a little confused as to where I get the range of scores - or don't I need it????

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#255468 - 10/14/04 05:13 PM Re: credit score delivery timing
Anonymous
Unregistered


You can get the range of credit scores from the credit reporting agency from which you obtain the credit report. For Beacon 5.0 at Equifax, I believe the range is 300-850 without industry options and 250-900 with industry options. If you are using Beacon Installment, you would use the latter range.

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#255469 - 10/15/04 07:50 AM Re: credit score delivery timing
DeeQ Offline
10K Club

Registered: 12/04/02
Posts: 40564
Loc: I don't know!
Quote:

Don't forget withdrawals and files closed for incompleteness - based on what is written above, those loans would escape the notificaiton if the notice was sent with the denial or committment letter.




Thanks... I'll check with the lenders...
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#255470 - 10/15/04 05:25 PM Re: credit score delivery timing
Anonymous
Unregistered


Doesn't 212 amend sec 609(a) to read that a Consumer Reporting Agency shall supply to the consumer (abbreviated version) a statement and a notice which shall include - current credit score, range of possible credit scores, all of the key factors, the date created.
Why would I provide that information if the CRA is the entity required to provide. Am I a CRA? How would I know if I am?

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#255471 - 10/15/04 06:20 PM Re: credit score delivery timing
Anonymous
Unregistered


The way I am reading 212 facta and 609 fcra:
As a lender working with a borrower on a 1-4 re loan I am going to give them three new items: The Notice to Home Loan Applicant, the Notice of credit scores that list the 5 items, and according to 609(g)(1)(a)(ii)we would need to give the Summary of Rights of Identity Theft Victims.
Am I wrong in my reading of this? If I am wrong, what does this section mean?

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#255472 - 10/18/04 10:11 AM Re: credit score delivery timing
ahou Offline
Power Poster

Registered: 08/15/02
Posts: 2663
That is my understanding also.
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#255473 - 10/18/04 12:12 PM Re: credit score delivery timing
Anonymous
Unregistered


Have we been given a sample of what the "Summary of Rights of Identity Theft Victims" is going to look like? Is the final rule on this disclosure going to be included with Sec 151 of FACTA which was due on 9-4-04 but we havn't heard about yet?

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#255474 - 10/18/04 12:52 PM Re: credit score delivery timing
Anonymous
Unregistered


I don't know the answer to your question about the Summary of rights of ID Theft victims - I would like to know that also.
I do have another question on the items required to be provided on the credit score disclosure. Is the date the credit score was created the date the credit report is pulled?
Also, the name of the person or entity that provided the credit score or credit file upon which the credit score was created - would that be the names of all the consumer's creditors that I would need to list out?

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#255475 - 10/18/04 12:56 PM Re: credit score delivery timing
DeeQ Offline
10K Club

Registered: 12/04/02
Posts: 40564
Loc: I don't know!
Quote:

Also, the name of the person or entity that provided the credit score or credit file upon which the credit score was created - would that be the names of all the consumer's creditors that I would need to list out?




I took that to be the name of the CRA, not the individual creditors..
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#255476 - 10/18/04 01:07 PM Re: credit score delivery timing
Anonymous
Unregistered


Thanks. That makes sense.
If we do automatic underwriting with one of the factors being the credit score from the credit report then do I need to do something different under 609(g)(1)(B) Disclosures in case of automated underwriting system?
If states we can satisfy the obligation to provide a credit score by disclosing a credit score and associated key factors. What is the difference between this and the Credit Score Disclosure. Also, I think I would still need to give the Summary of rights of ID Theft Victims and the Notice to Home Loan Applicants even if I am using an automated underwriting system. If someone could clarify that for me, I would appreciate it. Thank you

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#255477 - 10/18/04 03:42 PM Re: credit score delivery timing
Anonymous
Unregistered


Are you still a "home loan applicant" if you have withdrawn your application? If we just send the 212 Credit Score Notice with our approval and denial letters haven't we covered all "applicants"?

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#255478 - 10/19/04 09:26 AM Re: credit score delivery timing
Anonymous
Unregistered


Regarding delivery of the "Summary of Rights of Identity Theft Victims", FCRA Sec 609(d), FACT Sec 151(d)(2) says it is given out by a CRA when a consumer contacts it regarding identity theft, etc. Because of this, I see the delivery of this specific summary as the sole responsibility of the CRAs.

Also, this new Summary, along with a FACT-revised summary of general consumer rights and two FACT-revised notices, "Obligations of Furnishers Under the FCRA" and "Obligations of Users Under the FCRA" were published in the Federal Register Friday, July 16th, pages 42616-42626.
Written comments were requested by Aug 26th and no final rule making has been presented to date.

These summaries and notices cover 'every aspect' of the FACT Act ....

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