We use the exception in 1022.74 to provide a credit score disclosure for residential mortgage loans.

We pull a tri-merge credit report and use the lowest score to price and decision the loan. 1022.74(d)(4) makes it clear that if more than one score is pulled, our notice must show the score that was actually used (the lowest score, in our case).

There are times when our tri-merge report shows two bureaus as a no score, but one bureau with a score. In reading section f of the regulation, I'm a little confused on whether we should provide Model Form H-5 for no scores, since we would use the zero score in evaluating the loan. Or whether we should give Model Form H-3 and use the numerical score of the third bureau. The verbiage in 1022.74(f)(2) that discusses whether a second score was obtained seems to speak to non-mortgage credit. Nothing addresses mortgage credit.

Can anyone help?

I think you need to focus on .74(f)(1)(ii). One of the requirements under .74(f) for the delivery of the no score Model H-5 disclosure is that the creditor "Does not obtain a credit score from another consumer reporting agency". I read that to mean that if you did receive at least one score, then you would use Model H-3 and report on that score.


1022.74(f) Credit score not available. (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 the person:

(i) Regularly obtains credit scores from a consumer reporting agency and provides credit score disclosures to consumers in accordance with paragraphs (d) or (e) of this section, but a credit score is not available from the consumer reporting agency from which the person regularly obtains credit scores for a consumer to whom the person grants, extends, or provides credit;

(ii) Does not obtain a credit score from another consumer reporting agency in connection with granting, extending, or providing credit to the consumer; and

(iii) Provides to the consumer a notice that contains the following:

Is a Credit Score Exception Notice required to be sent for mortgage pre-qualifications when the credit is pulled? Is the Notice to Home Loan Applicant also required?

Yes - a Risked Based Pricing Disclosure would be required and you would use Model H-3 that includes the Notice to Home Loan Applicant. Both are not required.