Thread Options 
|
#271248 - 11/04/04 10:42 PM
Re: Notice to Home Loan Applicant & Credit Scores
|
Platinum Poster
Joined: Dec 2003
Posts: 543
Kentucky
|
bump........
_________________________
Not even close to being legal advice....I have a bridge for sale too!
|
|
Return to Top
|
|
|
|
|
#271249 - 11/05/04 02:35 PM
Re: Notice to Home Loan Applicant & Credit Scores
|
100 Club
Joined: Nov 2003
Posts: 181
Springfield, Illinois (Souther...
|
Our bank uses ARTA. We will be using their Notice to the Home Loan Applicant. We will give the completed Notice (i.e. with credit scores and key factors) to each applicant. In my opinion, it satifies the requirements of Section 212.
_________________________
bcastle CRCM
|
|
Return to Top
|
|
|
|
|
#271250 - 11/05/04 08:58 PM
Re: Notice to Home Loan Applicant & Credit Scores
|
100 Club
Joined: Jan 2004
Posts: 121
Rural Minnesota
|
Fellow ARTA users,
I take it this means that Bankers Systems has made form REGV-HLA-NOT available for download? When I spoke with our Rep just a couple of days ago, they said it was not available yet. Per Section 212, you have to make available on the credit score notice:
* Credit Score
* Possible range of scores
* Key Factors
* If number of inquiries adversely affected credit score
* Date of credit score
* Contact information for credit bureau
Is there room on this general notice for all of that? If not, I think we will just use our own credit score notice.
_________________________
My opinions are definitely my own; who else would want them!
|
|
Return to Top
|
|
|
|
|
#271251 - 11/05/04 09:08 PM
Re: Notice to Home Loan Applicant & Credit Scores
|
10K Club
Joined: Nov 2002
Posts: 20,656
The Swamp
|
Section 212 pertains to CRA's...not FI's. Sect 212(c) pertains to FI's. It requires:
1) The score and accompanying disclosures used by the CRA
2) the Home Loan Applicant Notice
I have a 2-page disclosure...one being the Notice to HLA and one being the Credit Score Disclosure. It is a form the lenders can insert the score, date of score and check the reasons shown by the CRA.
_________________________
My opinion only. Not legal advice.
Say you'll haunt me - Stone Sour
|
|
Return to Top
|
|
|
|
|
#271252 - 11/05/04 09:22 PM
Re: Notice to Home Loan Applicant & Credit Scores
|
100 Club
Joined: Jan 2004
Posts: 121
Rural Minnesota
|
Quote:
Section 212 pertains to CRA's...not FI's. Sect 212(c) pertains to FI's. It requires:
1) The score and accompanying disclosures used by the CRA
2) the Home Loan Applicant Notice
I have a 2-page disclosure...one being the Notice to HLA and one being the Credit Score Disclosure. It is a form the lenders can insert the score, date of score and check the reasons shown by the CRA.
I have understood Section 212(c) to mean that we must provide the information that was required by the CRA in Section 212. I have received information from both Equifax and Kirchman that agrees with this (the requirements I listed in my previous post), regarding the content of the credit score notice. I don't know who to believe about this anymore. It seems that even the compliance professionals that we have come to rely on for years, can't agree on our responsibilties.
_________________________
My opinions are definitely my own; who else would want them!
|
|
Return to Top
|
|
|
|
|
#271254 - 11/09/04 08:46 PM
Re: Notice to Home Loan Applicant & Credit Scores
|
Platinum Poster
Joined: Apr 2003
Posts: 933
New York State
|
Quote:
Look to your exclusions. We do not have to explain the information...Disclose any info other than the score and key factors...disclose any score or relation info obtained after closing or provide more than one disclosure per transaction. The second exclusion is your key.
YOu gotta really keep an eye on Kirchman...I find way too many errors in their BOB. 
And so round and round we go. Another banker told me that an FDIC examiner advised her "unofficially" that this section does not apply if we don't use the score in making the credit decision. And I say, "So how do I prove to the examiner that I didn't use it if its on the credit report?"
And if only one disclosure is needed, how do we handle applications with more than one individual and more than one score? It would seem that each would be entitled to the score and the key factors.
I'm dizzy 
|
|
Return to Top
|
|
|
|
|
#271255 - 11/09/04 09:47 PM
Re: Notice to Home Loan Applicant & Credit Scores
|
Platinum Poster
Joined: Mar 2004
Posts: 600
IN
|
My opinion is the only way to truly prove you don't "use" the score is to put your money where your mouth is and ask the credit bureaus to suppress it. If your lenders complain...I guess they were using it.
_________________________
Watch out, brother, for that long black train...
|
|
Return to Top
|
|
|
|
|
#271256 - 11/10/04 04:16 PM
Re: Notice to Home Loan Applicant & Credit Scores
|
10K Club
Joined: Nov 2002
Posts: 20,656
The Swamp
|
You are probably paying for the score anyway, so if you truly don't use it...have them remove it...unfortunately...we DO consider the score in our decision and pricing...so we are stuck with disclosure.
_________________________
My opinion only. Not legal advice.
Say you'll haunt me - Stone Sour
|
|
Return to Top
|
|
|
|
|
#271257 - 11/10/04 04:28 PM
Re: Notice to Home Loan Applicant & Credit Scores
|
Platinum Poster
Joined: Apr 2003
Posts: 933
New York State
|
Quote:
You are probably paying for the score anyway, so if you truly don't use it...have them remove it...unfortunately...we DO consider the score in our decision and pricing...so we are stuck with disclosure.
Unfortunately we use the score for risk-based pricing for indirect loans only. I am researching whether turning on the score is an all or nothing scenario for the bank. In other words, ideally I would like to see it on only in the branches/departments that purchase indirect paper.
|
|
Return to Top
|
|
|
|
|
#271258 - 11/13/04 04:35 PM
Re: Notice to Home Loan Applicant & Credit Scores
|
Anonymous
Unregistered
|
Joker, where can I find the two page disclosure you are talking about. All I have is the Notice to Home Loan Applicant off ARTA Lending
|
|
Return to Top
|
|
|
|
|
#271260 - 11/16/04 05:27 PM
Re: Notice to Home Loan Applicant & Credit Scores
|
Diamond Poster
Joined: Apr 2001
Posts: 2,245
|
Quote:
Joker, where can I find the two page disclosure you are talking about. All I have is the Notice to Home Loan Applicant off ARTA Lending
ARTA Lending will have a Credit Score disclosure as well as the Notice to Home Loan Applicant.
|
|
Return to Top
|
|
|
|
|
#271261 - 11/16/04 06:30 PM
Re: Notice to Home Loan Applicant & Credit Scores
|
Platinum Poster
Joined: Dec 2003
Posts: 543
Kentucky
|
Ted, do you know when this will be available on ARTA?
_________________________
Not even close to being legal advice....I have a bridge for sale too!
|
|
Return to Top
|
|
|
|
|
#271262 - 11/16/04 08:49 PM
Re: Notice to Home Loan Applicant & Credit Scores
|
100 Club
Joined: Sep 2004
Posts: 203
Michigan
|
We are an ARTA bank also. The technical rep from Bankers I emailed as late as yesterday wasn't even familiar with the credit score form. I kept getting referred back to the HLA notice, regv-hla-not. After repeated emails and more clarification (for the rep)from me, the rep emailed legal and yes a separate form called VMP-139 will be "available" through an FTP website on 12.1  .2004. IMHO, the flow of information on this specific reg and the updates from BAnkers could be much better than it has been. It seems like we are always calling them rather than getting information "heads up" notices telling us what is available and new. it is disappointing and frustrating.....
_________________________
Is it cocktail time yet? Make mine a double!
|
|
Return to Top
|
|
|
|
|
#271263 - 11/16/04 08:57 PM
Re: Notice to Home Loan Applicant & Credit Scores
|
100 Club
Joined: Jan 2004
Posts: 121
Rural Minnesota
|
From what I have seen of the HLA notice (regv-hla-not) it appears to be a combined notice, since it includes the general home loan applicant notice information, as well as lines for including the credit score and key factors. I am surprised that they are now coming out with another form for the credit score notice? I don't see why this would needed if the first form is compliant on its own (perhaps it is not)?
I couldn't agree with you more, I do not feel that Bankers Systems has been very helpful on this issue. I was also contacting them repeatedly on this issue, and getting nowhere. I did not even know that they were making a home loan applicant notice available (I was told by them that they were not planning to), until another BOL user stated that it was available for download.
This whole Act has been an exercise in frustration!!!
_________________________
My opinions are definitely my own; who else would want them!
|
|
Return to Top
|
|
|
|
|
#271266 - 11/17/04 07:34 PM
Re: Notice to Home Loan Applicant & Credit Scores
|
Diamond Poster
Joined: Oct 2000
Posts: 1,191
Springfield
|
General number for Equifax is 888-841-7335. I think Equifax is the bureau that isn't correcting anything via paper anymore (as of 10-1) - if you're talking to them about fixing a particular customer's credit report due to erroneously reported info, your only hope of correction is online via E-OSCAR.
_________________________
Opinions are Bartman's, not those of my employer. "A noble spirit embiggens the smallest man."
|
|
Return to Top
|
|
|
|
|
#271267 - 11/17/04 07:51 PM
Re: Notice to Home Loan Applicant & Credit Scores
|
Anonymous
Unregistered
|
We also have a sample of the BSI form REGV-HLA-NOT and I spoke with Equifax yesterday(1-800-685-5000). Equifax does not intend to enhance their e-port credit reports in a way that will accomodate lenders copying it for furnishing the credit score to the customer. The EFX credit report does not include a possible range of scores ("we already gave you that information when you were set up") and the BSI form doesn't have a line line provided for that information (yet?)
|
|
Return to Top
|
|
|
|
|
#271268 - 11/17/04 07:58 PM
Re: Notice to Home Loan Applicant & Credit Scores
|
Anonymous
Unregistered
|
I understand our CRA is offering to mail the NHLA disclosure as well as the credit scores/factors directly to the applicant for a fee when we pull a credit report. If we choose this option, how would will prove to examiners that the disclosures were given? Should we ask the CRA to also send us a copy of what they mailed? Would this method of indirect discloses be acceptable? If anyone knows I'd really appreciate your input - thanks!
|
|
Return to Top
|
|
|
|
|
#271270 - 11/17/04 09:12 PM
Re: Notice to Home Loan Applicant & Credit Scores
|
100 Club
Joined: Nov 2004
Posts: 237
USA
|
You do have to provide the range of possible credit scores under the model used.
|
|
Return to Top
|
|
|
|
|
#271271 - 11/17/04 09:40 PM
Re: Notice to Home Loan Applicant & Credit Scores
|
Anonymous
Unregistered
|
I am intrigued by the thought process that we are not required to disclose range of possible scores, however I can find no support. Subsection (f)requires CRA's to disclose items (1)(A) thru (E). Subsection (g) requires mortgage lenders to "...provide...INFORMATION REQUIRED UNDER SUBSECTION (f). For lenders not using an automated underwriting system, I don't see exclusions for (B)(D) and (E). Help?
|
|
Return to Top
|
|
|
|
|
#271272 - 11/17/04 09:44 PM
Re: Notice to Home Loan Applicant & Credit Scores
|
Anonymous
Unregistered
|
I retract my call for help. Subsection (E) blush-blush
|
|
Return to Top
|
|
|
|
|
#271273 - 11/18/04 02:04 AM
Re: Notice to Home Loan Applicant & Credit Scores
|
Anonymous
Unregistered
|
I'm confused. Could you explain? Thanks.
|
|
Return to Top
|
|
|
|
|
#271275 - 11/18/04 04:10 PM
Re: Notice to Home Loan Applicant & Credit Scores
|
Diamond Poster
Joined: Apr 2001
Posts: 2,245
|
Quote:
I am intrigued by the thought process that we are not required to disclose range of possible scores, however I can find no support. Subsection (f)requires CRA's to disclose items (1)(A) thru (E). Subsection (g) requires mortgage lenders to "...provide...INFORMATION REQUIRED UNDER SUBSECTION (f). For lenders not using an automated underwriting system, I don't see exclusions for (B)(D) and (E). Help?
Paragraph (E)(ii) of section 212 says that: "This subsection shall not require any person to--
...
(ii) disclose any information other than a credit score or key factors, as defined in subsection (f)"
So in one place it says you need five items and in another place it says that you only need two of the five. I spoke with attorneys for both the FTC and FRB about this issue and they said this was contradictory in the statute and they couldn't really give advice about what to do!
The conservative approach would be to give all five. Bankers Systems will have the Notice to Home Loan Applicants and a separate credit score disclosure that will accomodate the five items. If you are using an automated underwriting system or a score from a source other than a consumer reporting agency, subparagraphs (B) and (C) only require the credit score and key factors.
|
|
Return to Top
|
|
|
|
|
#271276 - 11/29/04 04:03 PM
Re: Notice to Home Loan Applicant & Credit Scores
|
Anonymous
Unregistered
|
Fellow ARTA users - do you plan on giving the borrower both the REGV-HLA-NOT and the VMP-139. To complete both and give to the applicant would appear to be giving out redundant information. i.e. Borrower Name, Property Address, Credit Scores and Key Factors. The only additional information the VMP-139 gives is the Range of Credit Scores and the Date of the Credit Score. What are you fellow ARTA users planning to do for compliance with Section 212? Are you going to require that both forms be completed?
|
|
Return to Top
|
|
|
|
|
#271277 - 11/29/04 04:08 PM
Re: Notice to Home Loan Applicant & Credit Scores
|
100 Club
Joined: Nov 2003
Posts: 181
Springfield, Illinois (Souther...
|
I am sorry - I forgot to login when I made the last post...it is I, bcastle who posted "anonymous".
_________________________
bcastle CRCM
|
|
Return to Top
|
|
|
|
|
|
Previous Thread
Index