I had written in my notes from a seminar that we shouldn't ever retain a copy of the credit score notice (H3, H4, or H5). Is that correct? I haven't been able to find that info anywhere. Do you not need to prove you gave it?

There is no requirement to prove you provided it.

Ok, good. Thanks.

If you do not keep a copy, how do you comply with the Interagency Exam Procedures (page 20...) that states "6. For institutions that choose to provide a credit score disclosure to consumers that request a loan that is or will be secured by residential real property, determine whether the Section 222.74(3) notice generally is provided to each consumer that requests such an extension of credit and that each notice contains:"?
Thanks!

You are required by regulation to provide either the RBPN or the Exception notice as applicable.

You have to demonstrate your compliance with the regulation therefore in essence you do have to prove you provided the disclosure as required by the regulation.

Any time you are required by regulation/Law to provide a disclosure you have to demonstrate (prove) you are in compliance with the regulation.

Thanks Dan!

We have a document checklist with our loan files to indicate that the disclosures we are not required to retain have been given to our customer. We also have policies and procedures requiring that they be given. This has worked for us in the past. Hopefully, it will continue to be sufficient.

We have something similar to what Waldensouth has described.

Those and your audit findings are, or should be, sufficient demonstration you are in compliance.

Be careful of large secondary market investors though and what thier requirements are.

Two have already told us that we will be required to provide copies of the exception notices provided in the package we send them, or they will nto purchase the loan.

We've been told by a few of ours that a copy is expected in the package as well.

And we had to request signatory lines from our credit bureau as she is required to get signatures for the secondary market.

I had to develop an acknowledgement page, similar to what I had to do with the GFE changes.