October 17, 2012
Changes to Consumer Adverse Action Letters - Effective November 17, 2012
What is changing?
As mandated by the Fair Credit Reporting Act (FCRA), United Guaranty sends Adverse Action letters to borrowers when (1) they do not to receive the most favorable MI pricing for the loan as a result of their credit score, or due to the discovery of new or undisclosed debts like mortgage(s) and installment loan debt(s), or (2) we deny mortgage insurance coverage based on their credit history.
In July 2011, the United Guaranty Adverse Action letter was modified in accordance with the Dodd-Frank Act, Section 1100F, which amended the FCRA, Section 615 (Requirements on users of consumer reports). That change introduced new requirements—which apply to the entire mortgage industry— that additional information be provided to borrowers when adverse action is taken based on a consumer's (borrower's) credit score. Click here for more information on these changes.
Effective Date: November 17, 2012
On November 17, 2012, United Guaranty will begin to send separate Adverse Action letters to affected co-borrowers; the co-borrower notifications will be similar to the Adverse Action letters currently sent to primary borrowers. United Guaranty has also created and refined additional letters to provide more detailed information about the factor or factors causing the letter to be generated. All Adverse Action letters include a toll-free customer service number and contact information for the credit reporting agencies if recipients need more information.
Please note: The only increase in number of letters will be those created for co-borrowers who are associated with the same loan as the primary borrower.
If you have questions about United Guaranty's Adverse Action letters, please contact your United Guaranty representative, or call our Underwriting Customer Service team at 877-642-4642, option 1.