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#2066493 - 02/29/16 02:31 PM Separate Envelopes for Risk Based Pricing Notice
terpsfan Offline
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I know the rule requires separate notice but does it require them to be provided in separate envelopes?

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#2066496 - 02/29/16 02:35 PM Re: Separate Envelopes for Risk Based Pricing Notice terpsfan
rlcarey Online
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The idea is that the information is to be delivered to them separately. How you do that by stuffing both into one envelope would be the question?
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#2066499 - 02/29/16 02:37 PM Re: Separate Envelopes for Risk Based Pricing Notice terpsfan
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#2066508 - 02/29/16 03:05 PM Re: Separate Envelopes for Risk Based Pricing Notice terpsfan
terpsfan Offline
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So if we mail the separate notices of joint applicants in a single envelope without putting them in separate envelopes within in the envelope it would a violation?

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#2066512 - 02/29/16 03:09 PM Re: Separate Envelopes for Risk Based Pricing Notice terpsfan
Dan Persfull Offline
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6. May the separate notices of joint applicants be inserted into a single envelope?
There is nothing in the final rule that prohibits a lender from inserting notices to each applicant into separate envelopes and then inserting those envelopes into a single envelope addressed to one address. The �insert� envelopes containing the notices should be addressed to the appropriate recipient.


You be the judge.
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#2066518 - 02/29/16 03:19 PM Re: Separate Envelopes for Risk Based Pricing Notice terpsfan
terpsfan Offline
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The rule says you have to give them separate notices but I did not think it said they have to be mailed separately. So they have to be in separate envelopes within the envelope to comply?

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#2066531 - 02/29/16 03:52 PM Re: Separate Envelopes for Risk Based Pricing Notice terpsfan
Dan Persfull Offline
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The quote above states that you can insert the notices to each applicant in separate envelopes addressed to the appropriate applicant and then place those envelopes in one envelope for mailing.

If you are not placing them in separate envelopes addressed to the appropriate applicant then you are in violation because you are not maintaining the required privacy in your delivery of the notices.
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#2066537 - 02/29/16 04:12 PM Re: Separate Envelopes for Risk Based Pricing Notice terpsfan
terpsfan Offline
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What is the best way demonstrate this procedure?

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#2066547 - 02/29/16 04:29 PM Re: Separate Envelopes for Risk Based Pricing Notice terpsfan
rlcarey Online
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You credit the separate notices that fit into a window envelope and your procedures call for them to be mailed separately.
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#2093599 - 08/16/16 08:35 PM Re: Separate Envelopes for Risk Based Pricing Notice terpsfan
Vive Accommodare Offline
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I'm curious, how is everyone handling the separate disclosure with e-disclosures? Is your LOS creating them separately?
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#2093631 - 08/17/16 04:08 AM Re: Separate Envelopes for Risk Based Pricing Notice terpsfan
rlcarey Online
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You better be. You have to deliver them separately.
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#2093797 - 08/17/16 06:37 PM Re: Separate Envelopes for Risk Based Pricing Notice terpsfan
Vive Accommodare Offline
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Unfortunately with our company we rely heavily on the investor's interpretation of regulations. Prior to my starting, the investor told our company it would be ok to not send the Model H-3 form and the current form they are using is combining the borrower and co-borrower credit scores. To top it off they were sending them with the rest of the disclosures!
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#2240207 - 07/27/20 07:00 PM Re: Separate Envelopes for Risk Based Pricing Notice terpsfan
Dan Persfull Offline
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Unfortunately I can't locate the FAQs and a Google search has also been unproductive. Maybe someone else seeing this will have a link to those FAQs.
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#2240213 - 07/27/20 07:34 PM Re: Separate Envelopes for Risk Based Pricing Notice terpsfan
rlcarey Online
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From the preamble to the final risk based pricing notice rules:

For credit score disclosure exception notices, a person must provide a separate notice to each consumer in a transaction involving two or more consumers who are granted, extended, or otherwise provided credit. Whether the consumers have the same address or not, the person must provide a separate notice to each consumer. Each separate notice must contain only the credit score(s) of the consumer to whom the notice is provided, and not the credit score(s) of the other consumer.

It is also directly addressed at 1022.75(c)
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#2240215 - 07/27/20 07:46 PM Re: Separate Envelopes for Risk Based Pricing Notice terpsfan
Dan Persfull Offline
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I just found the following:

https://www.bankersonline.com/forum/ubbthreads.php/topics/1933534/Providing_the_Credit_Score_Exc

In case anyone needs this information I did find the ABA doc that I was looking for that referenced this matter:

ABA Staff Analysis: Final Rule on Credit Score Notices July 2011

5. If the applicant and any co-applicant reside at the same address, may the lender provide both credit scores in the same notice?
No. Whether the consumers have the same address or not, the lender must provide a separate notice to each consumer if a notice includes a credit score. Each separate notice that contains a credit score must contain only the credit score of the consumer to whom the notice is provided and not the credit score of the other consumer. The reason is privacy. If the notice does not include a credit score, separate envelopes are not necessary for co-applicants residing at the same address.

6. May the separate notices of joint applicants be inserted into a single envelope?
There is nothing in the final rule that prohibits a lender from inserting notices to each applicant into separate envelopes and then inserting those envelopes into a single envelope addressed to one address. The �insert� envelopes containing the notices should be addressed to the appropriate recipient.
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The opinions expressed are mine and they are not to be taken as legal advice.

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