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#2244886 - 10/30/20 05:59 PM FCRA
Anonymous
Unregistered

I have been ask a question by an auditor....
Is the bank subject to 609(g) Disclosure of credit scores. If so, describe measures taken to comply with the ACT.
With our credit reports we print out the Risk Base Pricing notice that is given to the customer. The notice is given to the customer not the credit bureau. Is this what they are talking about?

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#2244889 - 10/30/20 06:16 PM Re: FCRA Anonymous
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,219
Galveston, TX
If you are risk based pricing your loans and delivering the H-3 Risk Based Pricing Exception notice to the applicant - that automatically complies with 609(g).

See comment 4 in Appendix H to 1022:

It is intended that appropriate use of Model Form H–3 also will comply with the disclosure that may be required under section 609(g) of the FCRA.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2244891 - 10/30/20 06:18 PM Re: FCRA Anonymous
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
609(g) is the section in the FCRA that requires the FI to provide the consumer with a credit score disclosure (if a score was used) and the Notice to Home Loan Applicant. It is a disclosure requirement completely separate from the RBP or Exception Notice requirements found in 1022. However the use of the exception notice model form H-3 is an acceptable substitute for the 609(g) disclosure requirements.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#2244895 - 10/30/20 06:35 PM Re: FCRA Anonymous
Inherent_Risk Offline
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Joined: Jan 2017
Posts: 570
Do you do mortgage transactions? 609(g) only applies to mortgage transactions, which might be what the auditor is asking.

I'm 84% sure the 609(g) requirements do not have an exception for denied files, whereas the the Risk Based Pricing exception notice does. As noted, H-3 does cover the content requirements for both though.

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#2244907 - 10/30/20 08:52 PM Re: FCRA Anonymous
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
If the loan will be secured by residential real property and is subject to 609(g) you will find no exception in that section for not providing the disclosure.

The exception for the RBP notice noted in 1022.74 has a condition for loans that are to be secured by residential real property.

d) Loans secured by residential real property—credit score disclosure. (1) In general. A person is not required to provide a risk-based pricing notice to a consumer under §1022.72(a) or (c) if:


If the loan is to be secured by residential real property you must either provide the 609(g) disclosure or the H-3 disclosure.
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The opinions expressed are mine and they are not to be taken as legal advice.

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