Skip to content
BOL Conferences
Thread Options
#1377555 - 04/20/10 07:57 PM What part of 623 is new and what is existing?
raitchjay Online
Power Poster
Joined: Oct 2009
Posts: 9,088
OK
Getting really confused about this...only part of 623 of FCRA is new? The rest of it has been in effect for a long time?
_________________________
I'm fixin' to fix that.

Return to Top
#1377715 - 04/20/10 11:35 PM Re: What part of 623 is new and what is existing? raitchjay
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,226
Galveston, TX
There were a lot of new parts to the FCRA with the passage of the FACT Act in 2003. It has just taken time for all of the new parts to be implemented. There have been no recent amendments to the Act itself.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#1377864 - 04/21/10 01:26 PM Re: What part of 623 is new and what is existing? rlcarey
raitchjay Online
Power Poster
Joined: Oct 2009
Posts: 9,088
OK
I guess that's what i'm asking...what parts of 623 (or is it all of it?) that should already be in effect and what parts should we be implementing as of 7-1?
_________________________
I'm fixin' to fix that.

Return to Top
#1380013 - 04/23/10 01:19 AM Re: What part of 623 is new and what is existing? raitchjay
jlroberts Offline
Diamond Poster
jlroberts
Joined: Sep 2009
Posts: 1,601
Ohio
I'm a little confused myself. I don't understand what exactly is NEW. When I compared the BOL policy sample to the one we have had in effect for several years, everything in there is already in ours. Why haven't finanical institutions already been following these pratices? What am I missing? Is it because it is now "required"?

Return to Top
#1380015 - 04/23/10 01:28 AM Re: What part of 623 is new and what is existing? jlroberts
Kathleen O. Blanchard Offline

10K Club
Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,293
Many parts were in the Act but the implementing regulations had not been issued. It was a very disjointed law in the way it was written with varying pieces to be implemented.
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

Return to Top
#1380777 - 04/23/10 06:50 PM Re: What part of 623 is new and what is existing? jlroberts
Here4Life Offline
100 Club
Joined: Feb 2010
Posts: 121
I'm with you jlroberts. The more I read, the more confused I'm getting! It seems to me that we are OK since our policy & procedures mirror those of the BOL sample.

Return to Top
#1381504 - 04/26/10 05:43 PM Re: What part of 623 is new and what is existing? Here4Life
Always In Training Offline
Diamond Poster
Joined: Jul 2006
Posts: 1,115
Where the Green Grass Grows
The only thing that we are "adding" to our procedures & policy is that if we can tell that the dispute that we receive directly is from a credit repair business - we are now not responding to these. (I'm still going to be dating them as of receipt and putting them in my dispute files - just not doing the research & responding.)

We will be documenting, for instance - out of area zip-code, signature doesn't match what we have on file for the customer, return address does not match customer.

Return to Top
#1384034 - 04/29/10 09:43 PM Re: What part of 623 is new and what is existing? Always In Training
Always In Training Offline
Diamond Poster
Joined: Jul 2006
Posts: 1,115
Where the Green Grass Grows
OOOOH! I forgot. We now (because we don't use credit scores) have to give a risk based pricing notice if we pull a credit report, and we aren't giving the borrower the *best* rate we offer.

Return to Top
#1384756 - 05/01/10 03:55 PM Re: What part of 623 is new and what is existing? Always In Training
Here4Life Offline
100 Club
Joined: Feb 2010
Posts: 121
The only product we could potentially offer the "preferred" or "best" rate is on consumer auto loans. Do we still need to give a risk based pricing notice?

Return to Top
#1384761 - 05/01/10 04:39 PM Re: What part of 623 is new and what is existing? Here4Life
ktac MITCH Offline
Diamond Poster
ktac MITCH
Joined: May 2005
Posts: 1,813
Giant side of TX
Originally Posted By: Here4Life
The only product we could potentially offer the "preferred" or "best" rate is on consumer auto loans. Do we still need to give a risk based pricing notice?

The Risk Based Pricing requirements are a little complicated to give a short summary BUT
IMO - The only way you would not need to give the Notice is if you have a Pricing Grid / Matirx etc. and you NEVER vary from the rate ie = All borrowers get 5.5% on a new vehicle regardless of their credit history / credit score / the vehicle / amt of down pmt . . .

Giving all applicants the Credit Score Notice is by far the easy answer
_________________________
My opinions are just that, and might be worth what you paid for them.

Return to Top
#1385975 - 05/04/10 10:54 PM Re: What part of 623 is new and what is existing? ktac MITCH
Dolly Nugent Offline
Diamond Poster
Dolly Nugent
Joined: Nov 2000
Posts: 1,820
Southern California


The FACT Act revised the FCRA to require that a creditor provide a risk-based pricing notice to a consumer when the creditor uses a consumer report in connection with an extension of credit and, BASED IN WHOLE OR IN PART ON THE CONSUMER REPORT, extends credit to the consumer on material terms that are materially less favorable to the most favorable terms available to a substantial proportion of consumers through that creditor.
_________________________
Dolly Nugent
CRCM
Opinions expressed are my own.

Return to Top
#1386252 - 05/05/10 03:51 PM Re: What part of 623 is new and what is existing? Dolly Nugent
Here4Life Offline
100 Club
Joined: Feb 2010
Posts: 121
Where can I find a risk-based pricing notice sample?

Return to Top
#1387051 - 05/06/10 06:47 PM Re: What part of 623 is new and what is existing? Here4Life
DD Regs Offline
Power Poster
DD Regs
Joined: Nov 2008
Posts: 4,132
Somewhere in the middle
Just so I don't have a panic attack, the risked-price notice isn't due unitl 01/2011?
_________________________
I'm only responsible for what I say, not for what you understand.

Return to Top
#1387065 - 05/06/10 06:53 PM Re: What part of 623 is new and what is existing? DD Regs
Soccer Offline
Diamond Poster
Joined: Jan 2010
Posts: 1,028
Utopia
Correct!!!
_________________________
Everything happens for a reason

Return to Top
#1387076 - 05/06/10 06:57 PM Re: What part of 623 is new and what is existing? Here4Life
Ted Dreyer Offline
Diamond Poster
Ted Dreyer
Joined: Apr 2001
Posts: 2,245
Here4life: The five model forms are in the regulations on pages 2761-2768:

RBP Rules

Return to Top
#1387307 - 05/06/10 08:58 PM Re: What part of 623 is new and what is existing? Ted Dreyer
Here4Life Offline
100 Club
Joined: Feb 2010
Posts: 121
Thanks!! For some strange reason I was confused & thought it was due in July! (I don't know how that would happen!)

Return to Top