CoreLogic Teletrack will release software in our production environment on July 21, 2011 which will conform to The Dodd-Frank Wall Street Reform and Consumer Protection Act (CFPB). This act, which was signed by President Obama on July 21, 2010, has prescribed new rules for Adverse Action notifications. The new credit score disclosure rules will become effective July 21, 2011.
Changes to the system are noted in our Technical Documentation. For assistance with testing the software release in the test environment, please contact our operations staff at operations@corelogic.com.
The new rules will impact all lenders who take adverse action against a consumer due to information in a consumer credit report.
Lenders will be required to disclose to the consumer:
- The actual numerical score used in the adverse decision
- The range of possible scores under the model used
- Key factors that adversely affected the credit score
This legislation mandates the delivery of up to 5 score reason codes. The notice must include the top 4 reason codes and a 5th reason code when inquiries play a negative part in the score calculation. If you have questions regarding the FCRA sections that are changing, you can refer to the Dodd-Frank legislation section 1100F.
