A mortgage company sends an adverse action notice that includes all required FCRA elements but fails to include the numerical credit score. The company claims they don't provide credit scores in adverse action notices as a matter of policy. This practice is:
Correct Answer
C) Prohibited under the Fair Credit Reporting Act's credit score disclosure requirements
Under FCRA Section 615(f), when adverse action is taken based on a credit report, lenders must provide the credit score used in the decision, along with key factors that adversely affected the score, the date of the score, and the name of the entity that provided the score. This requirement cannot be waived by company policy.
Why This Is the Correct Answer
Under FCRA Section 615(f), when adverse action is taken based on a credit report, lenders must provide the credit score used in the decision, along with key factors that adversely affected the score, the date of the score, and the name of the entity that provided the score. This requirement cannot be waived by company policy.
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An MLO obtains a credit report for a borrower's mortgage application using the permissible purpose of 'credit transaction.' The borrower is denied, but asks the MLO to reconsider based on a co-signer. To evaluate the co-signer's creditworthiness, the MLO:
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