The Notice to Home Loan Applicant and Your Credit Score and the Price you Pay for Credit Disclosure documents are required by the Fair Credit Reporting Act and provides the applicant with their credit bureau score, as well as information about how their score may affect the price they pay for credit (for example: interest rate, fees). These disclosures must be provided to client prior to closing on APPROVED applications. Contact information is within the document should they have any questions.
The disclosure must include the following:
- Beacon score
- 4 Key Factors Adversely Affecting Credit Score.
- In some cases there may only be 2 or 3 reasons listed. In those instances list those 2 or 3 reasons.
- Date credit bureau report was created
- If one of the key factors is “number of inquiries”, an additional key factor must be listed
Credit Score and the Price you Pay for Credit Disclosure
Provide the client with the Credit Score and the Price you Pay for Credit Disclosure when:
- They are applying for a consumer purpose loan,
- A credit bureau report is obtained, and
- The Loan will not be secured by a 1-4 family residence with real estate
This disclosure must be provided to the client:
- At the time of application
- Prior to loan closing
- By mail with Statement of Credit Denial Letter within 30 days of receipt of completed application
- By mail if request is withdrawn or approved but unfunded within 30 days of receipt of completed application
Notice to Home Loan Applicant and Your Credit Score And The Price You Pay For Credit Disclosure
Provide the client with the Notice to Home Loan Applicant and Your Credit Score And The Price You Pay For Credit Disclosure when:
- They are applying for a consumer purpose loan,
- A credit bureau report is obtained, and
- The Loan will be secured by a 1-4 family residence
This disclosure must be given to the applicant within 3 business days of receipt of the application. Saturday is considered a business day.
Consequences
- Fined up to $5,000
- One year in jail
- Both a $5,000 fine and one year in jail
- Actual damages, court costs, and attorneys’ fees
After entering the application information in DecisionPro (DPro), the Credit Score Disclosure prints when you print the application.
If you need additional assistance with DecisionPro (DPro), please refer to the DecisionPro Users Guide, or contact _DecisionPro Help.