FACT Act Disclosure

Use the FACT Act Disclosure form to add borrower and co-borrower credit score information from up to three reporting agencies. The credit information entered on the FACT Act Disclosure input form determines which version of the Credit Score Disclosure Exception document (Risk-Based Pricing Notice) will be used in disclosure packages:

  • Model H1 is used if field DISCLOSURE.X637 (Credit Information Used From the Credit Report to Set the Terms of Credit) is populated.

  • Model H3 is used if field DISCLOSURE.X637 (Credit Information Used From the Credit Report to Set the Terms of Credit) is blank and at least one Credit Score for Disclosure Notice checkbox is selected. A separate Model H3 is generated for each checkbox selected.

  • Model H6 is used if field DISCLOSURE.X637 (Credit Information Used From the Credit Report to Set the Terms of Credit) is populated and at least one of the Material Terms of Credit Set by Credit Score checkboxes is selected. A separate Model H6 is generated for each checkbox selected.

Some fields on the form may be populated with information returned from the credit provider. Review the remaining fields and complete the entries manually.

To Complete the Credit Bureau and Credit Information Sections:

  1. On the Forms tab, click FACT Act Disclosure.

  2. In the Credit Bureau sections, click the Address Book icon to select a credit company from your business contacts. You can also type company information and then right-click to add a new contact to your business contacts.

  3. In the Model Used field, type the credit rating system that was used, such as FICO.

  4. In the Range of Scores fields, type the numeric range of the scores used by the credit company.

  5. For each borrower and co-borrower, enter the reported credit score, the date the credit score was reported, and Key Factors as needed.

    You must enter a percentage amount in the Your Credit Score Ranks Higher Than field to populate the percentage on the Credit Score Disclosure Exception output form.

  6. Select the appropriate checkboxes to indicate how credit scores are being used in the disclosure, if applicable.

    In the Credit Bureau sections, if you select the Credit Score for Disclosure Notice checkbox for a borrower or co-borrower, the credit bureau information for the borrower of co-borrower will be populated to the Statement of Denial output form.

  7. In the Credit Information section, enter the number of late payments listed in the credit reports, complete the entries for Other Credit Information, and enter information about bankruptcy and foreclosure issues.