One more question from the seminar – as a general rule, we do not get new credit reports if the last one on file was less than a year ago. When we get the initial credit report, we have the borrower sign the statement from the credit bureau telling them their score, the range of scores, factors affecting the score, etc. Should we then have them sign and date it again when they come in for additional loans in that one year period?
I’ve posted below a portion from Reg V (222.70(a)(1) that I think answers your question.
§ 222.70 Scope
(a) Coverage. (1) In general. This subpart applies to any person that both—
(i) Uses a consumer report in connection with an application for, or a grant,
extension, or other provision of, credit to a consumer that is primarily for personal,
family, or household purposes; and
(ii) Based in whole or in part on the consumer report, grants, extends, or
otherwise provides credit to the consumer on material terms that are materially less
favorable than the most favorable material terms available to a substantial proportion of
consumers from or through that person.
The regulation doesn’t mention anything about the freshness, if you will, of the report relied upon. I do believe you would need to apply which ever option you are using to address the Risked-Based Pricing Notice requirement.