03/27/2006
I understand according to FACTA, a notice to the Home Loan Applicant disclosing credit score information is required, if a consumer applicant applies for an open or closed end credit that will be secured by 1 to 4 family residential real property. Our Bank automatically acquires this notice through our credit bureau reporting agency when credit is pulled. However, our procedures allow a Lender to utilize a credit report that has previously been pulled for some other transaction, as long as it is not older than a designated time frame. This may present a problem for us, since we do not need to pull credit on that customer to make a credit decision on this new real estate transaction. But, as part of our underwriting tool we are taking into consideration the contents and credit score of the previously pulled credit report. If we did not pull a new credit report, and obtain a new credit score to underwrite this new real estate transaction, are we still required to give the FACTA notice to the applicants?
01/09/2006
When sending a negative information disclosure for FACTA Section 212, does a notice need to be sent to each individual on the account? A compliance source stated that a negative disclosure needs to be sent to each individual on the account, in separate envelopes.
12/05/2005
Has a model form been issued for the FACTA Risk-based pricing notice yet? We just starting using credit scores for our loan pricing and want to be sure we have all of the proper disclosures.
11/07/2005
I am in the process of updating my loan policy to reflect recent changes to FACTA and predatory lending. I was going to just add a general statement to the policy stating that we comply with the changes in the FACT Act. Should I elaborate more in my policy and do I need to outline the entire Act in my procedures? What recent changes that I may have missed that need to be added to adjusted to my policy?
08/15/2005
Under FACTA, would a Notice To Home Loan Applicant and associated credit score information be necessary on a loan to finance construction of the consumer/borrower's primary residence?
08/01/2005
Can our Lending department use a credit report from our mortgage department to offer a pre-approval Home Equity to a customer? Is there a section in the FACT Act that addresses this and can you refer me?
07/04/2005
Under the FACTA, if a residential mortgage loan applicant has no credit score (a non-resident alien, for example), would the Notice to Homeowner and disclosure requirement be waived?
05/16/2005
If we do not report any negative information for loans or credit cards what parts of FACTA are important for us to comply with?
01/31/2005
During several phone seminars regarding the FACT Act, reference has been made to a provision on the Act which will deal with requiring procedures for "employee misconduct investigations." However, now that regulations have started coming out re: the FACT Act, this reference to "employee misconduct investigations" seems to have vanished from the lists of what is or will be covered by the FACT Act regulations. Could you clear this up for me?
08/23/2004
Add "V" to Your Regulatory Alphabet
by Mary Beth Guard
Guru BIOS