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#1921405 - 05/08/14 05:46 PM ECOA/Regulation B and Privacy
M Cockrell Offline
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M Cockrell
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Dallas, TX
Has there been a change (possibly since DFA?) in regards to "no expectation of privacy" between joint/co-applicants?

I cannot find this phrase anywhere in Reg B or its commentary.
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#1921590 - 05/08/14 11:05 PM Re: ECOA/Regulation B and Privacy M Cockrell
Reads Regs Offline
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I don't believe it was ever in the regulation including the official staff commentary. When the FRB published a final rule on Regulation B in the 3/18/03 issue of the Federal Register, they mentioned privacy in the supplementary information section. Here's what they said.

Many commenters were concerned
about the co-applicant’s or guarantor’s
privacy when the reasons for adverse
action pertaining to creditworthiness are
given to the primary applicant. When a
person agrees to be a co-applicant,
guarantor, or similar party, however,
there is (or should be) a general
understanding that information will be
shared. Accordingly, the rule has been
adopted as proposed.
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#1921722 - 05/09/14 02:44 PM Re: ECOA/Regulation B and Privacy Reads Regs
M Cockrell Offline
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M Cockrell
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Dallas, TX
So, is there still "a general understanding that information will be shared" between applicants? Or, did that fall by the wayside at some point subsequent to 2003?
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#1921726 - 05/09/14 02:46 PM Re: ECOA/Regulation B and Privacy M Cockrell
Kathleen O. Blanchard Offline

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Kathleen O. Blanchard
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The only difference is for sharing of scores under FCRA. They are not to be shared.
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#1921731 - 05/09/14 02:50 PM Re: ECOA/Regulation B and Privacy Kathleen O. Blanchard
M Cockrell Offline
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M Cockrell
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Posts: 1,033
Dallas, TX
Understood (and agreed).

So, if we're providing separate AAN's for each applicant (along with our credit score disclosure notice), but applicant A's AAN states the denial reason is applicant B (or vice versa), is there an issue?
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#1925139 - 05/21/14 02:45 PM Re: ECOA/Regulation B and Privacy M Cockrell
NotALawyer Offline
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If sending two notices, the reasons for denial should be the same on both. They submitted one application and that application was denied due to one set of reasons. The only differences between the two notices would be the name/address (if at different addresses) and (if included) the credit score disclosures.

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#1927220 - 05/28/14 07:13 PM Re: ECOA/Regulation B and Privacy M Cockrell
JWills, CRCM Offline
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JWills, CRCM
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The Mitten State
So in this situation:
Two borrowers--borrower A has credit score in the 500's, 30 day late payments, medical collections, chargeoffs. Borrower B has not scored due to insufficient credit. A few medical collections show.
Borrower A would receive their AAN with the credit score disclosure notice.
Would we list the same denial factors for Borrower B and not complete the credit score disclosure notice?
It was my understanding that each AAN disclosed the particular denial reasons to that borrower.
So for this request we should give Borrower A the AAN w/credit score and Borrower B the AAN w/out the credit score but list the same reason for denial? Even though Borrower B was not on the loan that had been 30 days past due?
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#1927223 - 05/28/14 07:15 PM Re: ECOA/Regulation B and Privacy M Cockrell
rlcarey Online
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rlcarey
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Galveston, TX
Why are you giving borrower B anything?
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#1927226 - 05/28/14 07:17 PM Re: ECOA/Regulation B and Privacy M Cockrell
JWills, CRCM Offline
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JWills, CRCM
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The Mitten State
If we have two borrowers we give two AAN notices.
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#1927230 - 05/28/14 07:19 PM Re: ECOA/Regulation B and Privacy M Cockrell
rlcarey Online
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rlcarey
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Galveston, TX
Why?

1002.9(f) Multiple applicants. When an application involves more than one applicant, notification need only be given to one of them but must be given to the primary applicant where one is readily apparent.

If you choose to give two, you have made your own problems.
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#1927234 - 05/28/14 07:22 PM Re: ECOA/Regulation B and Privacy M Cockrell
JWills, CRCM Offline
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JWills, CRCM
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The Mitten State
I did just print out a copy of this.


But in reading in Paragraph 9(b)(2)#9, what if Borrower 1 was okay credit, and Borrower 2 has a 500 score. Would we leave off the FCRA information from the Borrower 1 AAN, and would we be required to send one to B2?

Thank you
Last edited by JWills; 05/28/14 07:26 PM.
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Nonsense wakes up the brain cells.

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#1927242 - 05/28/14 07:40 PM Re: ECOA/Regulation B and Privacy M Cockrell
rlcarey Online
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rlcarey
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Galveston, TX
Yes - or just send the AAN to #2. If they are joint applicants, neither is primary.
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#1927261 - 05/28/14 08:02 PM Re: ECOA/Regulation B and Privacy M Cockrell
JWills, CRCM Offline
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JWills, CRCM
Joined: May 2013
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The Mitten State
Thank you! As always, I appreciate your help.
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