Federal Mortgage Law · 24% of the SAFE exameasy
Correct answer: A written adverse action notice that includes the credit score used, the range of possible scores, and the key factors that adversely affected the score
Under FCRA, when a lender uses a credit score in making an adverse credit decision, the lender must provide the consumer with a written adverse action notice that includes the credit score used in making the decision, the range of possible scores under the model used, the date the score was created, the name of the credit reporting agency that provided the score, and the key factors (up to four) that adversely affected the score. This requirement ensures consumers understand how their credit data was used and gives them the information needed to address any issues. A verbal explanation (A) is insufficient. FCRA does not require a waiting period (C) or a mandatory reconsideration offer (D).
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