keep it safe, keep it legal
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.
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