Regarding the AAN and credit score and factors adversly affecting the credit score - - I spoke with Experian as they have informed me to used the score, range, date and factors from the RBPN exeption notice (EN)and copy to the AAN. When I questioned why the RBPN-EN did not have the factors, I was advised that I was looking at a non-mortgage RBPN-EN and that they (factors adversy affecting the score) were not required for non-mortgage loans. Is this true on the AAN too - if so does anyone have a reference where it says that?

Is this true on the AAN too.

That is not a true statement. Only the NHLA previously required the factors to be listed, that is why the non-mortgage RBPN did not include them.

So, if I understand correctly, althought the non-mortgage RBPN does not include the factors, the non-mortgage AAN does?

Yes.

Thank you - that was what I originally had thought/found. So - Experian doesn't appear to feel the reasons are required on the AAN for non-mortgage. I will will have to work through that - or maybe they will see the light by august 15. However, in the meantime, any issue in pulling the mortgage RBPN-EN to get the reasons - if the loan is approved I could send the mortgage RBPN-EN and just pull off the NHLA to non-mortgage applicants? (I believe Experian has us choose one way of the other)

Every credit report that I have seen that contains a credit score contains the key factors in the report itself. Whether they are printing it on some disclosure document for you is a whole nother issue.

Yes, I have found it in on the credit report itself - and will have staff use that. I was just mentally working through work arounds. Thanks for your help - I really appreciate it.

New question: Do we need to provide the credit score info on the AAN if we are providing a Notice to Home Loan Applicant?

It looks like the reg states we need to, but these notices seem to provide the same information...?

Not a new question but the answer is yes. Reread the final rule beginning on page 13.

What about using a 3rd party vendor vs. pulling credit directly from the credit bureau? Do you put the name and address of the vendor or the agency name of which you used the score to make the credit decision?

What information needs to be provided when someone is denied a checking account through ChexSystems?

Chexsystems has their own adverse action form to be completed. It has satisfied the regulators so far for us.

I'm returning to the original question. Today I started reading the new Compliance Action newsletter and there is a handy chart on page 4 that ties together information causing a denial and notices required. One entry describes reasons for denial related to credit history, but the score is OK. The listed action for FCRA is "Provide FCRA notice but not the credit score notice." Some posters are saying if the score is received, it is assumed it is used and should be disclosed. I've been instructing our consumer underwriter to include the disclosure if the denial is related to the information in the report that ties to the score, even if the score specifically is not the basis for the denial. We do look at the score, but it may not be low enough to cause a denial. Are we over- disclosing?

My bank is going the conservative route: since the credit score is on the credit report, we're giving the credit score reasons. We don't wish to be second-guessed by an examiner.

That said, I have a segue question: The Fed's Final Notice appeared at first blush (to many reading) to take the guarantor out of the AA equation completely. It seems to me that the guarantor was removed from needing to be given the extra credit score-related information (and certainly not the ECOA AA notice with reasons for denial), but when the guarantor's credit report was used wholly or in part to deny the applicant's credit app, the guarantor STILL needs to get the basic FCRA notice with the name, address and phone # of the credit bureau used. Is that correct?

No - a guarantor is not an applicant and therfore, you are not taking adverse action against the guarantor under either regulation.

^^^^ This - and PLEASE don't give the regulators any other ideas!

I'm wondering the same thing - if we use a reseller (SARMA) and list SARMA's contact information in the section that discloses that we obtained information from a CRA to make our credit decision, and we also disclose that we used a score and disclose the middle score and related information - can we use the verbiage "we also obtained your credit score from this cra and used it in making our credit decision" even though that directs them to the re-seller, or is that misleading and should we be disclosing the optional name/address info of the specific cra (i.e. Equifax) in the credit score disclosure section?

Thanks Randy. My 'regulatory pause' was due to the underlying purpose of the FCRA: to provide persons with incorrect data on their consumer credit reports with an alert that information in their reports led to an adverse action, so that they can then pursue the path of challenging/correcting the bad stuff. So, since a strict reading does seem to exclude them from guarantors (and co-signers) being excluded from the 'heads up' FCRA notification process... until they're an applicant or co-applicant. Banks best get the differentiation down pat!

The answer I received years ago on this is that the party that ultimately provided the credit reports to you is the "credit reporting agency" to YOU, and that is the name you provide. However, I have seen banks also go the extra mile and also give the root credit bureau information.

Has anyone heard of an examiner criticize either of these?

We will be using the model form C-5 for AAN for deposit account denials. We use Chexsystems for the report, but the branch floor (new accounts) does not get the Qualfile score section of the report. So the decision to open or deny is not based upon a score. The Qualifle score does appear for the administrater level but they do not make any decisions to open or not and they are not located at the branches.

I have been searching for this answer in the threads too. We pull our credit reports through Kroll Factual Data. Previously we have only ever listed Kroll on our AAN. That decision was made long before my time so I've been trying to find what information/documentation that was based on. Of course nobody here remembers. Due to software changes, in order to get the credit score, range and key factors to print on the AAN now, we have to list the agency it comes from. The software was also changed limiting us to only listing 3 agencies (used to let us list 4). I called our software provider and asked them why and the rep told me we only need three lines to list the agencies that are providing the scores on a merged report. They can't advise us on listing a third party provider. Argh! I finally called our examiner and here's what he said (please don't shoot the messenger; I'm very well aware our examiner gives the most bizarre interpretations):
If Kroll is only passing through information to us from Experian, Equifax and TransUnion and is not analyzing and/or making adjustments to the information, they are not a CRA and would not need to be listed on the AAN.

Everything I've found in the threads so far contradicts that opinion. I still don't know what to do.

click here

The 4th link was exactly what I needed. I hadn't gone back that far in my search yet. Thank you.