A mortgage lender uses credit report information as one factor in setting the interest rate for an approved loan, resulting in a higher rate than the most favorable terms offered. This action requires:
Correct Answer
B) A risk-based pricing notice under FCRA
Under FCRA Section 615(h), when credit information results in less favorable terms than the most favorable terms offered, a risk-based pricing notice must be provided, even if the loan is approved.
Why This Is the Correct Answer
Under FCRA Section 615(h), when credit information results in less favorable terms than the most favorable terms offered, a risk-based pricing notice must be provided, even if the loan is approved.
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