1. If we do not receive a completed application (6 required Items under TRID) but pull a Soft Credit Report, does the Notice to Home Loan Applicant have to be given?
2. Does the Notice have to be given to applicant if the credit decision was a denial within the 3 days without a completed application?

Our NHLA prints out with our Initial Disclosures and not within the 3 day denial timeframe. I feel we are out of compliance as the applicant initiated or sought a closed end loan secured by 1 to 4 units. The Completed Application is throwing me along with the Soft Credit Pull (it is not a Tri-Merge).

I understand that once we have a completed application and pull a Hard Credit Report pull, we have to give the Notice along with the Risk Based Pricing Notice or Credit Score Exception disclosure. Just getting confused on the completed application requirement.

1. The trigger is the receipt of an application. The RESPA definition of an application was changed to match that of Regulation Z for the TRID requirements.

2. 1024.20(a)(5) The lender is not required to provide the list of homeownership counseling organizations required under this section if, before the end of the three-business-day period provided in paragraph (a)(1) of this section, the lender denies the application or the loan applicant withdraws the application.

The Risk Based Pricing Notice or Credit Score Exception disclosure is not triggered by a complete application. It is triggered by pulling a credit report that contains a credit score. Soft pull/Hard pull makes no difference if you are obtaining a credit score. A Risk Based Pricing Notice does not have to be delivered if the loan is denied. There is no similar exception for an Exception disclosure.

The Notice to Home Loan Applicant is triggered by FCRA 609(g).

(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:


There is no carve out for an incomplete, denied or withdrawn applicaiton.

Randy,
Does the Notice to Home Loan Applicant have to be given if the application was denied within the 3 days of applying?
This disclosure was what I was referring to and not the Homeownership Counseling Organization list.

Dan posted the statute above for the Notice of Home Loan Applicant. There is no carve out for either the NHLA or the Risk Based Exception Notice, if you pull a credit score.

Thank you both.