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#1974020 - 11/04/14 05:53 PM H-1 vs. H-6 Risk-based Pricing Notice
rachelchri Offline
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Joined: Aug 2010
Posts: 165
I'm sure this question has been answered a thousand times before, but I'm hoping to get some additional clarificiation:

In the situation of a consumer loan (ex: Auto Loan, unsecured, etc - not mortgage related):

If a bank uses a consumers credit score in dictating what rate/term/etc the customer gets, they would receive the H-6 Risk-Based Pricing Notice.

If a bank does not use a consumer credit score in dictating what rate/term/etc the customer gets, they would receive the H-1 Risk-Based Pricing Notice.

If said customer doesn't have a credit score, they would receive the H-5 Risk-Based Pricing Notice.

is this correct?

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#1974098 - 11/04/14 08:42 PM Re: H-1 vs. H-6 Risk-based Pricing Notice rachelchri
Ted Dreyer Offline
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Ted Dreyer
Joined: Apr 2001
Posts: 2,245
If you are going to give risk-based pricing notices to the consumer, those are the ones that you would use. But remember, because you are using the regular risk-based pricing notices rather than the exception forms, you are only supposed to give them to those consumers whose terms are materially less favorable. The biggest advantage to using the exception notices is that they can be given to everyone without "doing the math" on who gets one and who doesn't.

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#1974146 - 11/04/14 10:39 PM Re: H-1 vs. H-6 Risk-based Pricing Notice rachelchri
rachelchri Offline
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Joined: Aug 2010
Posts: 165
So, if we wanted to utilize the exception notices we would use H-3 for all 1-4 family residential, and H-4 for anything else. Could H-4 be used to replace H-1, H-6, & H-5 ?

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#1974292 - 11/05/14 04:28 PM Re: H-1 vs. H-6 Risk-based Pricing Notice rachelchri
Ted Dreyer Offline
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Ted Dreyer
Joined: Apr 2001
Posts: 2,245
The exception notices H-3 and H-4 replace the H-1 and H-6, but if there is no score you would still need the H-5.

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#1984130 - 12/18/14 05:49 PM Re: H-1 vs. H-6 Risk-based Pricing Notice rachelchri
rachelchri Offline
100 Club
Joined: Aug 2010
Posts: 165
Where would Raw Land purchases come into play? Use the H-3 Notice, or H-4 because the collateral isn't considered "residential real property".

HELP!

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#1988390 - 01/13/15 07:14 PM Re: H-1 vs. H-6 Risk-based Pricing Notice rachelchri
Oursisnottoreasonwhy Offline
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Oursisnottoreasonwhy
Joined: Nov 2004
Posts: 494
Central Illinois
H-4 since it is not 1-4 family residential

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