|
A new law was recently enacted in California that will require lenders to disclose credit scores to California residents, in conjunction with residential real estate loans beginning July 1, 2001. The following is a summary of what lenders may expect as they comply with this new legislation, as well as what First American CREDCO is doing to comply with the new law.
California Senate Bill 1607 states that it applies to "any person who makes or arranges loans and who uses a consumer credit score.... in connection with an application initiated or sought by a consumer for a closed end loan or establishment of an open end loan for a consumer purpose that is secured by one to four units of residential real property."First American CREDCO will provide, upon request from a consumer who is a California resident, a score document which provides the following information:
The key factors that adversely affected the consumer’s credit score(s) in the model(s) used, together with a brief explanation of what each factor means.The date the credit score(s) were created.The
name of the person(s) or entity(ies) that provided the credit
score(s) or the credit file(s) upon which the credit score(s)
were created. [Please note the following abbreviations: "EFX"
= Equifax; "XPN" = Experian; "TUC" = TransUnion
Corporation]The range of possible credit score(s) under the model.
Names and addresses for contacting the repositories who provided the score:
|
|
- The
developer of the methodology of the score model is:
Fair, Isaac and Company, Inc.
120 N. Redwood Drive
San Rafael, CA 94903
There is a fee for the credit score only or for the complete credit report including the score. The fee is waived if the consumer was denied credit due to the information contained in the credit report.
View
the Full Text of the FCRA
|
