06/27/2011
The ECOA came out last year stating that creditors cannot discriminate on the handling of credit report fees on the basis of marriage. The two companies that we pull credit reports from do not charge differently if we pull a single report or a joint report. Where we think that we see a possible concern when we have 3 borrowers on a loan (2 married and 1 parent). The parent will be charged the same as the joint children. Is this a potential discrimination? Please clarify for us when an application is really considered a joint application. Is there any guidance out there? When should we be using 1 application verses 2 applications or 2 verses 1? Any guidance would be greatly appreciated.
06/20/2011
If we use the alternate credit score notice for the risk based pricing notice, do we only send it to the consumers for whom credit reports are obtained? There is wording in that option that states: If using the alternative credit score notices, all consumer loan applicants must receive a notice. We do not get a credit report on every consumer application.
06/20/2011
Is an Adverse Action Notice required when a credit report is pulled and the FICO score is not sufficient for the program desired?
04/25/2011
My bank does mainly commercial lending. We have a couple of 'refinance' scenarios that we have questions on. We had a loan approved in 2010 - the purpose was refinance business debt and my bank was taking a subordinate lien position on the principal's residence. After the bank's approval the borrower did not approve our terms and my lending officer did no further investigation so I do not know if the loan we were paying off was secured by a lien on their personal residence or not to know if it falls under HMDA. How do we make the determination as to if it is HMDA or not?
04/11/2011
Are we required to keep a copy (signed or otherwise) of the "Your Credit Score and the Price You Pay for Credit" document for mortgage or non-mortgage loans? It is produced when we produce a credit report and is given to the customer as part of the closing package.
03/14/2011
How often do you have to pull a credit report? If consumer customer makes application today and disclosure is given, and makes application again in 4 months does a new report have to be pulled and new disclosure given.
03/07/2011
I have a question on the disclosure of the actual credit report fees on HUD-1/HUD-1A. We currently disclose the amount of $13.82 for single and $25.19 for joint reports on the GFE. The actual cost is rarely the amount disclosed on GFE. The disclosed GFE amounts represent the initial credit report charge, but in most cases we end up ordering updates that will cause the actual charge to go up. Mortgage Department management is not willing to charge customers additional fees and would like to charge and disclose on HUD-1/HUD-1A $13.82 for single and $25.19 for joint report as they say that the difference will be absorbed by the Origination Fee that we charge everybody. Can we really do that?
02/14/2011
With regard to the risk-based pricing regulation, when our mortgage department does a mortgage prequalification, a credit report is pulled, but an application has not been made. Since an application has not been made, I am assuming a credit score disclosure (this is the method we choose to use) does not have to be provided. Is this correct?
01/10/2011
Relative to risk-based pricing, do I have to obtain a credit score? If not, does this new requirement apply?
08/09/2010
When is a credit report fee a finance charge? I thought the credit report should be in the finance charge, but the customer's loan collateral is his primary residence.