Credit Score Notice and Notice of Action

Answered by:

Question:

To comply with Section 311 "Risk Based Pricing Notices" of the FACT Act, we are opting to provide the credit score disclosure to applicants. For one-to-four family real estate transactions, does the Sec 311 "Notice to the Home Loan Applicant" replace the Sec 212 "Notice to the Home Loan Applicant?" Section 212 states the notice has to be provided with a Notice of Action. Section 311 states adverse action is an exception to the notice requirement. Should we provide the Credit Score Notice with the Notice of Action anyway?

Answer:

222.74 Exceptions
(d) Loans secured by residential property - credit score disclosure.
(1) In general. A person is not required to provide the risk-based pricing notice to a consumer under 222.72(a) or (c) if:
(D)The information required to be disclosed to the consumer pursuant to 609(g) of the FCRA;You would not have to provide the risk-based pricing notice under 222.72 but you still have to follow the requirements of 609(g).

First published on BankersOnline.com 1/17/11