FACTA Negative Information Notice

Answered by:

Question:

We are currently providing a FACT Act negative information notice to our second mortgage applicants. This notice also includes the member's current credit score and the corresponding CRA. Are we required to provide this notice to our consumer loan applicants as well?

Answer:

The negative notice must be provided to all customers to whom you may report negative information to the credit reporting agencies. The credit score disclosure is only required for consumer purpose loans initiated by a consumer that will be secured by 1-4 residential real property.

First published on BankersOnline.com 10/20/08