So my bank handles secondary market transactions that are risk priced and we'll be sending the exception notice. We also have a portfolio program that is a "one rate fits all" product. The credit report has no impact on the pricing or the terms set - so technically these don't need the RBP notice.

I'm concerned about our ability to produce the old Credit Score Notice and Notice to Home Loan Applicant for the portfolio stuff, and the revised Credit Score Notice (H-3) for secondary market - seems like it's inviting errors. Does anyone see an issue with delivering the H-3 exception notice for all of my mortgage transactions, even those that are not technically risk base priced? At this point I don't even know if my software (Calyx) will support two notices.

We are going to be doing the H-3. Check with your credit bureau. All we had to do was notify them that we wanted them to produce one with the credit report and they flipped a switch.

Thanks Queen. Yes, we did start seeing one produce from the credit bureau so we do have something, but it's not compliant - yet anyway. It doesn't mirror the model form, has some verbiage missing, etc.

I guess I'm still not sure though if it's o.k. to send the revised Credit Score Notice (the new H-3) on loans where I'm not really risk based pricing or if I need to send the old FACT Act Credit Score Notice and NTHLA just like I have been - which would put me in the position of having to maintain two notices. Are you saying you think the H-3 notice is o.k. even if it's for a mortgage product that we don't risk based price? I hope so... but I'm not confident yet.

I think my question is similar to SkiDoo's, but Im' not sure I want the same outcome. What I really want is to be able to give all of my mortgage applicants the same notice (H-3) for simplicity's sake - but I'm not sure that I can.

Our Credit Bureau had some choices we had to make - signature lines or no signature lines (not required but secondary market is requiring our lender to get signatures); narrative or histogram or both; all 3 or mid-range score; H-5 or not and if we wanted them to mail the disclosure for us. We are going to pull one tomorrow to look it over.

We are just going with the Exception across the board. It doesn't say that it is risk-priced just disclosing their score and where they fall in with others. Much easier.

Ok, I have read through the threads and am still a little confused. We use credit score initially on whether the loan will be made. We then use a rate sheet to determine the rate. It is not a formal tier decision, but each category of loan has a base rate and LO can go up or down a tiny bit based on relatioship with bank, cash flow, etc. The rate decision is not based upon credit score. Would this still be risk based pricing? As always, thank you for your time!

The rate decision is not based upon credit score.

Unless your policy specifically outlines the qualifications to go up or down and none of those are remotely related to information on the credit report (it doesn't have to even be a score) that is going to be one hard thing to prove................

I have a question about the chart on the H-3 Notice. Under the chart, it appears the bank may complete the "or your credit score ranks higher than X percent of U.S. consumers..." Can someone tell me how or where we would get this information which would be unique for each customer?

Our notices are being produced by our Credit Bureau at the time we order the credit report.

Same as Waldensouth, here.

I don't think you could get that info easily any other way.

Does anyone have any guidance on these??? I have read through several boards and I have not seen these answered.

We are using the ComplianceOne platform system to generate the proper Risk based princing notice based on score ranges and collateral type. On form H-1 / B-1 in the "How did we us your credit Report?" what is the correct verbiage/language for this field?

If you are also using this platform, I would like to visit about other items, also.

Thank you

Read the thread (no poetry intended). I still don't see a response to the question on whether or not we need to give the notice to poeple who withdraw or who do not take the offer we provide. It looks like we would still have to give the notice...in my reading, but i want to make sure!

I do not see where this was specifically addressed in the threads. If a customer is approved and then withdraws is the notice provided? THANKS

No, you do not.

This is addressed in 12 CFR 222.73(c) - the timing requirements - and in the official commentary in the Federal Register (75 Fed. Reg. 10,2731 (Jan. 15, 2011)), in which the regulators state that:

"A person may grant credit to a consumer, and the consumer may reject the offer before a notice is required to be provided. Thus, some consumers who are granted credit may not receive a notice if they decline that credit before they are given the notice."

Obviously, if the consumer withdraws the credit request prior to a credit decision even being made by a creditor, a notice would not be provided by the lender in that instance either.

Is anyone contracting with the CRA to provide the notices for their mortgages?

How do you document compliance for your files?

We do. The credit report prints another copy that stays with the credit report, while the CRA mails the applicant(s) their copy. The CRA is supposed to send us a master list to show who got mailed a copy as our documentation.

Thanks RJAY.

Haven't got that far in the discussion with the CRA.