As I previously posted, I'm in the process of refinancing my mortgage. I went in with a copy of my credit report and asked if he could at least look it over and see if we could do business before he pulled my credit. He did, but said he would have to pull to finalize. I asked if I could get a copy of my credit report when he pulled it, and he said "sure." That sort of surprised me, because I thought that lenders didn't like to give you scores, and many of them say that if they do they would violate their agreement with the CRAs. Well, in looking over my report, I found this at the bottom: SCORE(S) DISCLOSURE NOTICE TO THE HOME LOAN APPLICANT In connection with your application for a home loan, the lender must disclose to you the score that a credit bureau distributed to users and the lender used in connection with your home loan, and the key factors affecting your credit scores. It then goes on to describe what a credit score is and what it's used for, as well as a statement that if you have questions about your credit score you should contact the credit bureau at the address and telephone number provided with this notice. Address and phone numbers of all three bureaus were included on the report, as well as contact information for each of the creditors. There was also a full page summary of your rights under the Fair Credit Reporting Act, with contact information for the various federal agencies authority to enforce the FCRA. This list includes who to contact for certain types of information (if the bank has NA after its name, contact the OCC, for example). This makes it sound like they not only CAN give you your scores, but that they MUST give you your scores. I don't know if this is new or not (under FACTA?). I've never heard of it before. And I don't know if it's only for mortgage loans. But if you're applying for a mortgage, get your scores!
FACTA 609(g): (g) Disclosure of Credit Scores by Certain Mortgage Lenders (1) In general. Any person who makes or arranges loans and who uses a consumer credit score, as defined in subsection (f), in connection with an application initiated or sought by a consumer for a closed end loan or the establishment of an open end loan for a consumer purpose that is secured by 1 to 4 units of residential real property (hereafter in this subsection referred to as the ââ?¬Å?lenderââ?¬Â) shall provide the following to the consumer as soon as reasonably practicable: (A) Information Required under Subsection (f) (i) In general. A copy of the information identified in subsection (f) that was obtained from a consumer reporting agency or was developed and used by the user of the information. (ii) Notice under subparagraph (D). In addition to the information provided to it by a third party that provided the credit score or scores, a lender is only required to provide the notice contained in subparagraph (D). (B) Disclosures in Case of Automated Underwriting System (i) In general. If a person that is subject to this subsection uses an auto-mated underwriting system to underwrite a loan, that person may satisfy the obligation to provide a credit score by disclosing a credit score and associated key factors supplied by a consumer reporting agency. (ii) Numerical credit score. However, if a numerical credit score is generated by an automated underwriting system used by an enterprise, and that score is disclosed to the person, the score shall be disclosed to the consumer consistent with subparagraph (C). (iii) Enterprise defined. For purposes of this subparagraph, the term ââ?¬Å?enter-priseââ?¬Â has the same meaning as in paragraph (6) of section 1303 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992. (C) Disclosures of credit scores not obtained from a consumer reporting agency. A person that is subject to the provisions of this subsection and that uses a credit score, other than a credit score provided by a consumer reporting agency, may satisfy the obligation to provide a credit score by disclosing a credit score and associated key factors supplied by a consumer reporting agency. (D) Notice to home loan applicants. A copy of the following notice, which shall include the name, address, and telephone number of each consumer reporting agency providing a credit score that was used: ââ?¬Å?Notice To The Home Loan Applicant ââ?¬Å?In connection with your application for a home loan, the lender must disclose to you the score that a consumer reporting agency distributed to users and the lender used in connection with your home loan, and the key factors affecting your credit scores. ââ?¬Å?The credit score is a computer generated summary calculated at the time of the request and based on information that a consumer reporting agency or lender has on file. The scores are based on data about your credit history and payment patterns. Credit scores are important because they are used to assist the lender in determining whether you will obtain a loan. They may also be used to determine what interest rate you may be offered on the mortgage. Credit scores can change over time, depending on your conduct, how your credit history and payment patterns change, and how credit scoring technologies change. ââ?¬Å?Because the score is based on information in your credit history, it is very important that you review the credit-related information that is being furnished to make sure it is accurate. Credit records may vary from one company to another. ââ?¬Å?If you have questions about your credit score or the credit information that is furnished to you, contact the consumer reporting agency at the address and telephone number provided with this notice, or contact the lender, if the lender developed or generated the credit score. The consumer reporting agency plays no part in the decision to take any action on the loan application and is unable to provide you with specific reasons for the decision on a loan application. ââ?¬Å?If you have questions concerning the terms of the loan, contact th lender.ââ?¬Â
See also FACTA 609(g)(2): (2) Prohibition on Disclosure Clauses Null and Void (A) In general. Any provision in a contract that prohibits the disclosure of a credit score by a person who makes or arranges loans or a consumer reporting agency is void. (B) No liability for disclosure under this subsection- A lender shall not have liability under any contractual provision for disclosure of a credit score pursuant to this subsection.
Thanks. I thought maybe it was because of the new laws, but I was surprised that there was no problem when I asked for both mine and my husband's reports. They just printed a copy and handed them over.
There appears to have been a shift from the earlier position where this was all "proprietary" information sold only to the lender, with the CRA and FairIssacs trying to limit disclosure to the consumer. This was supposedly not detrimental to the consumer, since he could buy his own copy (possibly different) of this wonderful information if he wanted to.
