The passage of the Dodd-Frank Wall Street Reform Act has amended the Fair Credit and Reporting Act which governs access to credit information. As a result, landlords potentially need to augment the information they provide to applicants on their notice of adverse action (denial) or conditional acceptance (with adjusted terms).
If a landlord takes an action other than acceptance with respect to an applicant that is based in whole or in part on any information contained in a consumer credit report, the landlord shall provide the following additional information to the applicant.
• Numerical Score (the Credit Score – found on the credit report)
• Score Range of the Scoring Model Used (e.g., Transunion (350-900) – Experian (300-900))
• Score Factors (factors affecting the score – found on the credit report)
• Score Date (the request date on the credit report)
• Score Source (the credit bureau that supplied the Credit Score – found on the credit report)
If you reject an applicant or offer conditional acceptance/adjusted terms (e.g., higher security deposit) and that action is based in whole or part based in information in the credit report you are required to provide a notice of adverse action (denial) or conditional acceptance (with adjusted terms).
Exceptions to the new reporting requirements apply if you do not receive a credit score as part of your resident screening report and if your report is not based in whole or in part on information from the credit bureaus. Some resident screening companies now deliver a resident risk score versus the traditional screening report with credit history. If you receive a risk score from your provider, you should verify if you are impacted by the new regulations with your resident screening provider.
If you would like to read more about the passage of the Dodd-Frank Wall Street Reform Act and the impact on landlords or access rental forms that are legally compliant for use in California, contact Romeo Valdez at email@example.com or 858-751-2208.
Nothing in this article is to be interpreted as legal advice; you should consult your attorney if you have legal questions.
About the author:
Romeo Valdez is the Director of Membership Development for the San Diego County Apartment Association (SDCAA). Romeo has earned his designation as a California Certified Residential Manager (CCRM) and has worked in the real estate industry for over 10 years. The SDCAA is working to serve the needs of individuals and companies who own, manage, or provide services and products to more than 135,000 rental housing units in San Diego County. Please contact Romeo with any questions about the SDCAA at (888) 762-7313 or (858) 751-2208 or firstname.lastname@example.org. Visit www.sdcaa.com for more information.