I need a little help. We risk base price some loan products but not all. We do send a Credit Score Exception Notice for all applications and when applicable the Notice to the Home Loan Applicant.
The question I have is when we send an adverse action notice is it ok to re-send the credit score exception notice along with the Notice to the Home Applicant with the AAN to comply with amending section of 615(a).

I'm sorry but I'm not following your question.

If you provided the H-3 Exception Notice which has the NHLA disclosure why would you need to resend it with an AAN?

I think I understand now.

The H-3 Exception Notice would not substitute for the information required by 615(a) to be disclosed on the AAN.

I agree with Dan that the H-3 cannot be used as a substitute for the adverse action information required under the FCRA.

From the commentary to the Adverse Action final rule:

“Some industry commenters asked the Board to clarify that if a creditor provides a credit score exception notices or section 609 notices to consumer, the creditor would not be required to include the disclosures required by section 1100F of the Dodd-Frank Act in the adverse action notice. One industry commenter also requested that the Board clarify that a creditor is allowed to combine the section 609(g) notice with an adverse action notice. For the reasons discussed below, the Board does not believe a creditor would comply with the FCRA adverse action provisions in section 1100F by providing a credit score disclosure exception notice or section 609(g) notice. In addition, the Board does not believe that the 609(g) notice may be integrated into a FCRA adverse action notice."

Thanks for your response. I have some that want to re-send the credit score exception notice WITH the AAN because it already contains some of the information that is required, such as the key factors, credit score, range of possible credit scores. The AAN itself contains the other information that is required by 615(a). Your thoughts?

If the credit score was used in the underwriting decision, the key factors, credit score, date of score, and range of possible scores must be included on the AA notice. I guess I am not understanding the reasoning why they are wanting to include the credit score exception notice again.

Does your AA notice contain the key factors, credit score, range of scores, etc?

They include the credit score exception notice with the AAN due to it having all the information that is required with the AAN. It would be like the 2nd page of the AAN.

That isn't permitted if they aren't also completing the 2nd page of the AA Notice. If the AA Notice is complete, they could send it, but it would be pointless as the information is redundant - plus they should have already received the exception notice.

The bottom line is that the credit score exception notice cannot be used as a substitute for completing the FCRA (portion of the) AA Notice.

Again, from the commentary to the AA Notice rules:
"...the Board does not believe a creditor would comply with the FCRA adverse action provisions in section 1100F by providing a credit score disclosure exception notice or section 609(g) notice."