The Exception Notice must be provided as soon as reasonably practicable, but in any event at or before consummation in the case of closed-end credit or before the first transaction is made under an open-end credit plan.

If a credit report is pulled at application or before due to an "inquiry/pre-qualification" and the Exception Notice is not sent with the early disclosures, is it ok to wait to give it at closing even if closing happens 30 or more days later?

Does anyone know of any regulators holding banks to a "reasonably practicable" standard? How are you defining reasonably practicable?

I am confused, if you are pulling credit, you have to have an application otherwise what is your permissible purpose if you are not contemplating entering into a credit transaction with the borrower. You cannot pull a report on just an inquiry.

1022.74(d) Loans secured by residential real property—credit score disclosure. (1) In general. A person is not required to provide a risk-based pricing notice to a consumer under §1022.72(a) or (c) if:

(i) The consumer requests from the person an extension of credit that is or will be secured by one to four units of residential real property

Thank you for the feedback. But ignoring the "inquiry" aspect, I need to know about the reasonably practicable question.

Is it ok to wait to give it at closing even if closing happens 30 or more days later? Does anyone know of any regulators holding banks to a "reasonably practicable" standard? How are you defining reasonably practicable?

No, that is not reasonably practical. Reasonably practical is in a couple of business days. Why are you not just contracting with the credit bureau to send it out for you every time you order a credit report for a small fee. All the credit bureaus worth their weight offer that service. Otherwise, you most likely have to transpose all of that information to your notice, and that as you know, also creates the opportunity for errors.

We have a similar situation as it pertains to inquiries. We obtain written consent from a consumer to run their credit report as part of our ability to quote an interest rate for the type of loan they are asking about. They have not submitted an application, but we gather certain information into our platform (pipeline), including running a credit report with written permission. If the consumer does not eventually apply, do we owe a Credit Score Disclosure Exception Notice? If the consumer does apply, the Credit Score Disclosure Exception Notice goes out with our Loan Estimate and other early disclosures. But seems we have a "hole" as it pertains to these inquiries that do not go anywhere.

I will again ask: "Why are you not just contracting with the credit bureau to send it out for you every time you order a credit report for a small fee."?

You are pricing your quote based on their credit report so I am not sure why you would not send it and let them know that their credit report may impact the price you are quoting them?

Also, I suggest that you review your contract with the credit bureaus as many do not list "written permission" as a valid permissible purpose that you are attesting to when pulling a report when you signed the contract.

As Randy said, why not just give/send it out with the quote? If the quote is given in person, then just print it out and hand it to them. If the quote is given online, the disclosure can be part of the online process (with appropriate consent). If the quote is given over the phone, mail it out.

But technically the notice only has to be given to those who actually request an extension of credit, so if it's sent when the application is received, that should be fine. For those who never actually submit an application, it's not required to be sent.