DISCLOSURE OF CREDIT SCORES.

SEC. 212. DISCLOSURE OF CREDIT SCORES. (a) Statement on Availability of Credit Scores.—Section 609(a) of the Fair Credit Reporting Act (15 U.S.C. 1681g(a)) is amended by adding at the end the following new paragraph:“(6) If the consumer requests the credit file and not the credit score, a statement that the consumer may request and obtain a credit score.”.(b) Disclosure of Credit Scores.—Section 609 of the Fair Credit Reporting Act (15 U.S.C. 1681g), as amended by this Act, is amended by adding at the end the following: “(f) Disclosure of Credit Scores.—“(1) In general.—Upon the request of a consumer for a credit score, a consumer reporting agency shall supply to the consumer a statement indicating that the information and credit scoring model may be different than the credit score that may be used by the lender, and a notice which shall include—“(A) the current credit score of the consumer or the most recent credit score of the consumer that was previously calculated by the credit reporting agency for a purpose related to the extension of credit;“(B) the range of possible credit scores under the model used;“(C) all of the key factors that adversely affected the credit score of the consumer in the model used, the total number of which shall not exceed 4, subject to paragraph (9);“(D) the date on which the credit score was created; and117 STAT. 1974“(E) the name of the person or entity that provided the credit score or credit file upon which the credit score was created. “(2) Definitions.—For purposes of this subsection, the following definitions shall apply:“(A) Credit score.—The term ‘credit score’—“(i) means a numerical value or a categorization derived from a statistical tool or modeling system used by a person who makes or arranges a loan to predict the likelihood of certain credit behaviors, including default (and the numerical value or the categorization derived from such analysis may also be referred to as a ‘risk predictor’ or ‘risk score’); and“(ii) does not include—“(I) any mortgage score or rating of an automated underwriting system that considers one or more factors in addition to credit information, including the loan to value ratio, the amount of down payment, or the financial assets of a consumer; or“(II) any other elements of the underwriting process or underwriting decision.“(B) Key factors.—The term ‘key factors’ means all relevant elements or reasons adversely affecting the credit score for the particular individual, listed in the order of their importance based on their effect on the credit score. “(3) Timeframe and manner of disclosure.—The information required by this subsection shall be provided in the same timeframe and manner as the information described in subsection (a).“(4) Applicability to certain uses.—This subsection shall not be construed so as to compel a consumer reporting agency to develop or disclose a score if the agency does not—“(A) distribute scores that are used in connection with residential real property loans; or“(B) develop scores that assist credit providers in understanding the general credit behavior of a consumer and predicting the future credit behavior of the consumer. “(5) Applicability to credit scores developed by another person.—“(A) In general.—This subsection shall not be construed to require a consumer reporting agency that distributes credit scores developed by another person or entity to provide a further explanation of them, or to process a dispute arising pursuant to section 611, except that the consumer reporting agency shall provide the consumer with the name and address and website for contacting the person or entity who developed the score or developed the methodology of the score.“(B) Exception.—This paragraph shall not apply to a consumer reporting agency that develops or modifies scores that are developed by another person or entity. “(6) Maintenance of credit scores not required.—This subsection shall not be construed to require a consumer reporting agency to maintain credit scores in its files. “(7) Compliance in certain cases.—In complying with this subsection, a consumer reporting agency shall—117 STAT. 1975“(A) supply the consumer with a credit score that is derived from a credit scoring model that is widely distributed to users by that consumer reporting agency in connection with residential real property loans or with a credit score that assists the consumer in understanding the credit scoring assessment of the credit behavior of the consumer and predictions about the future credit behavior of the consumer; and“(B) a statement indicating that the information and credit scoring model may be different than that used by the lender. “(8) Fair and reasonable fee.—A consumer reporting agency may charge a fair and reasonable fee, as determined by the Commission, for providing the information required under this subsection.“(9) Use of enquiries as a key factor.—If a key factor that adversely affects the credit score of a consumer consists of the number of enquiries made with respect to a consumer report, that factor shall be included in the disclosure pursuant to paragraph (1)(C) without regard to the numerical limitation in such paragraph.”.(c) Disclosure of Credit Scores by Certain Mortgage Lenders.—Section 609 of the Fair Credit Reporting Act (15 U.S.C. 1681g), as amended by this Act, is amended by adding at the end the following:“(g) Disclosure of Credit Scores by Certain Mortgage Lenders.—“(1) In general.—Any person who makes or arranges loans and who uses a consumer credit score, as defined in subsection (f), in connection with an application initiated or sought by a consumer for a closed end loan or the establishment of an open end loan for a consumer purpose that is secured by 1 to 4 units of residential real property (hereafter in this subsection referred to as the ‘lender’) shall provide the following to the consumer as soon as reasonably practicable: “(A) Information required under subsection (f ).—“(i) In general.—A copy of the information identified in subsection (f) that was obtained from a consumer reporting agency or was developed and used by the user of the information.“(ii) Notice under subparagraph (d).—In addition to the information provided to it by a third party that provided the credit score or scores, a lender is only required to provide the notice contained in subparagraph (D). “(B) Disclosures in case of automated underwriting system.—“(i) In general.—If a person that is subject to this subsection uses an automated underwriting system to underwrite a loan, that person may satisfy the obligation to provide a credit score by disclosing a credit score and associated key factors supplied by a consumer reporting agency.“(ii) Numerical credit score.—However, if a numerical credit score is generated by an automated underwriting system used by an enterprise, and that score is disclosed to the person, the score shall be 117 STAT. 1976 disclosed to the consumer consistent with subparagraph (C).“(iii) Enterprise defined.—For purposes of this subparagraph, the term ‘enterprise’ has the same meaning as in paragraph (6) of section 1303 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992. “(C) Disclosures of credit scores not obtained from a consumer reporting agency.—A person that is subject to the provisions of this subsection and that uses a credit score, other than a credit score provided by a consumer reporting agency, may satisfy the obligation to provide a credit score by disclosing a credit score and associated key factors supplied by a consumer reporting agency. “(D) Notice to home loan applicants.—A copy of the following notice, which shall include the name, address, and telephone number of each consumer reporting agency providing a credit score that was used: