We have switched loan software and our new one is giving a "negative information disclosure" which basically says 'we may report infor about your account to credit bureaus and late or missed payments may be reflected in your credit report". Is this something new in a reg because we haven't been giving this and I didn't see it under FCRA's disclosure section.

It's not new, you should have been sending it out already. It should be disclosed to the customer before you report any negative information about their credit with you. Sometimes you'll have it in your loan docs, and also check the statements you send to your customers when they are late on a payment.

This has been effective since July 16, 2004 and was part of the FACT Act of 2003. Go to the Alphabet Soup section of BOL and click on Reg V then scroll down to Appendix B. As MunQue said, there are two ways to comply with this - before reporting or after. Instead of giving a notice at loan closing, some banks include on past-due notices, collection letters, etc.

But it's not required when opening a loan?

The requirement for this notice is found in FCRA section 623(a)(7) and it discusses the two options you have in providing the negative disclosure.

It is not required to be given at loan closing although that is the most opportune time to give it.