Communities and landlords are entitled to accept or deny an applicant from moving into their properties by establishing certain criteria, but in the event of a denial, certain legal practices must be followed so your community can avoid legal liability while maintaining it safe from undesired tenants. If your community or landlord denies an applicant due to a low credit score, new regulations under the Dodd-Frank Wall Street Reform and Consumer Protection Act requires you to make the following additional disclosures:
If adverse action is taken based on the information in a credit report with score, the notice must now contain the following information:
Actual numerical score used in the adverse decision
Range of possible scores under the model used
Key factors that adversely affected the credit score – top 4 factors are required and a 5th is required when number of credit report inquiries was one of the 4 factors.