H-1 vs. H-6 Risk-based Pricing Notice

Posted By: rachelchri

H-1 vs. H-6 Risk-based Pricing Notice - 11/04/14 05:53 PM

I'm sure this question has been answered a thousand times before, but I'm hoping to get some additional clarificiation:

In the situation of a consumer loan (ex: Auto Loan, unsecured, etc - not mortgage related):

If a bank uses a consumers credit score in dictating what rate/term/etc the customer gets, they would receive the H-6 Risk-Based Pricing Notice.

If a bank does not use a consumer credit score in dictating what rate/term/etc the customer gets, they would receive the H-1 Risk-Based Pricing Notice.

If said customer doesn't have a credit score, they would receive the H-5 Risk-Based Pricing Notice.

is this correct?
Posted By: Ted Dreyer

Re: H-1 vs. H-6 Risk-based Pricing Notice - 11/04/14 08:42 PM

If you are going to give risk-based pricing notices to the consumer, those are the ones that you would use. But remember, because you are using the regular risk-based pricing notices rather than the exception forms, you are only supposed to give them to those consumers whose terms are materially less favorable. The biggest advantage to using the exception notices is that they can be given to everyone without "doing the math" on who gets one and who doesn't.
Posted By: rachelchri

Re: H-1 vs. H-6 Risk-based Pricing Notice - 11/04/14 10:39 PM

So, if we wanted to utilize the exception notices we would use H-3 for all 1-4 family residential, and H-4 for anything else. Could H-4 be used to replace H-1, H-6, & H-5 ?
Posted By: Ted Dreyer

Re: H-1 vs. H-6 Risk-based Pricing Notice - 11/05/14 04:28 PM

The exception notices H-3 and H-4 replace the H-1 and H-6, but if there is no score you would still need the H-5.
Posted By: rachelchri

Re: H-1 vs. H-6 Risk-based Pricing Notice - 12/18/14 05:49 PM

Where would Raw Land purchases come into play? Use the H-3 Notice, or H-4 because the collateral isn't considered "residential real property".

HELP!
Posted By: Oursisnottoreasonwhy

Re: H-1 vs. H-6 Risk-based Pricing Notice - 01/13/15 07:14 PM

H-4 since it is not 1-4 family residential