As much as I have tried to avoid the dreaded Dodd-Frank, it appears to have finally gotten to me. As I have been dragged away from my BSA area, I have a residential lender who doesn't know the answer to this question. Unfortunately neither do I.

A joint application for a residential mortgage is denied due to one of the borrower's credit scores. Would an AAN be required for both applicants? Or just the one with bad credit score?

I have a bad feeling this will be the first of many subsequent posts

Both get the the AAN.

While Reg. B is ok with giving only the primary applicant an AAN, i think FCRA would say in this instance both need one. Here's the reference i'm looking at, and since i see no distinction made, i think "a consumer report" has to be looked at as "either consumer's report". In other words, applicant A is getting adverse action because of applicant B's credit report, but both need an AAN because both are getting adverse action based on information obtained from "a" consumer report. Just my interpretation of how that reads.

a) Duties of users taking adverse actions on the basis of information contained in consumer reports. If any person takes any adverse action with respect to any consumer that is based in whole or in part on any information contained in a consumer report, the person shall

(1) provide oral, written, or electronic notice of the adverse action to the consumer;

Reg B 202.9 notice requirements - Primary applicant - however you can provide to all applicants if you want.

FCRA 615 notice requirements - all applicants whose credit report was used in part or in whole in the adverse action.

Dan, i like your interpretation of 615 better. I've recently been trying to update our AAN procedures and i had the version you just quoted in my head, but the wording that i quoted above from 615 troubled me. Am i understanding you correctly: if applicant A's credit report is great and no basis for the adverse action, but applicant B's credit report is bad and causes both applicants to get denied, only B needs an AAN under FCRA?

You'll have to excuse my ignorance on this Dan. Are you saying that Reg B. requires the disclosure to only the primary applicant? What if the co-applicant is the one with the bad score?

That said is there only one form going forward? Or, must two separate forms be used?

Yes. 202.9(f)



Since we use the combined ECOA/FCRA AAN we have been sending separate notices for several years and will continue to do so.

If you and I applied for joint credit and the loan was denied based on information in my consumer report but not yours then I am the only one required to receive the FCRA AAN udner 615.

If these recent revisions have amended that then I missed it in my hurried reading.