Forms H-3 and H-4 in Risk Based Pricing contain a chart depicting credit scores of applicants grouped by percentages of consumers who fall into various score categories. Where does one find that chart? I presume it is a nationally based chart per Consumer Rating Agency.

You would have to get that information from whatever consumer reporting agency that you use. Keep in mind, though, that you can put either that bar graph or the statement that "Your credit score ranks higher than ___ percent of US consumers" in that part of the form. You do not need both. In addition, that bar graph may change over time.

Thanks Ted, somehow I overlooked the alternative wording option.

I saw a thread recently stating the exception notices had timing requirements different from the requirements of the regular notices. I thought the timing notices of: after approval but before consummation on closed-end, and after approval but before first transaction on open-end were applicable to all notices, execptions included. Can anyone shed some light on this.

That's the timing for the standard RBP notices, the H-1 notice, from section 222.73. For the timing of the exception notices see 222.74(d)(3) for the H-3 notice, 222.74(e)(3) for the H-4 notice and 222.74(f)(4) for the H-5 notice.

Thanks Ted,
I read the referred sections and now I am more confused. 222.74(d)(3) (form H-3) refers you to FCRA 609(g). 609(g) refers you to 609(a)which does not address timing as I read it.

222.74(e)(3) (form H-4) says "as soon as reasonably practicable after the credit score has been obtained, but in any case at or before consummation in the case of closed-end credit or before the first transaction is made under an open-end credit plan." Two questions: does consummation mean loan closing or something else, and why is Form H-4 referring to closed-end credits ( I thought H-4 was specific to open-end credits only, with H-3 for closed-end credits).

222.74(f)(4) says "as soon as reasonably practicable after the person has requested the credit score, but in any event not later than consummation of a transaction in the case of closed-end credit or when the first transaction is made under an open-end credit plan." Does this mean that Form H-5 need not be given unless the customer requests it? Additionally, what is a "transaction" as used in this section?

It seems that there is a different standard
for each form H-3, H-4, and H-5.

I know this is a lot but can you provide any clarification.

609(g) Disclosure of Credit Scores by Certain Mortgage Lenders
(1) In general. Any person who makes or arranges loans and who uses a consumer credit score, as defined in subsection (f), in connection with an application initiated or sought by a consumer for a closed end loan or the establishment of an open end loan for a consumer purpose that is secured by 1 to 4 units of residential real property (hereafter in this subsection referred to as the “lender”) shall provide the following to the consumer as soon as reasonably practicable

So, the timing is the same for H-3 as it is for H-4 and H-5.

Consummation is commonly the loan closing.

Model form H–4 is for use in connection with the credit score disclosure exception for loans that are not secured by residential real property. Model form H–5 is for use in connection with the credit score disclosure exception when no credit score is available for a consumer. They are used for both open and closed-end loans.

Does this mean that Form H-5 need not be given unless the customer requests it?

No - that is only one of the triggers. Not later than consummation of a transaction in the case of closed-end credit or when the first transaction is made under an open-end credit plan are the other triggers.

Additionally, what is a "transaction" as used in this section?

I would read this as before the first debit posts to the account.

I agree with Randy's post above.

Thank you very much, very helpful.

Thank you very much.

One additional question. We plan on using the H-3, H-4, and H-5 forms. I am assuming they only go to those whose loans are approved because an adverse action notice negates the need to send this notice.

However, you would have to deliver a Notice to Home Loan Applicant for those that you do not send Model H-3.