WTF is the Notice To Applicant — Credit Score Information Disclosure?

When you apply for a mortgage, the lender must send you the Notice to Applicant — Credit Score Information Disclosure (a/k/a the “H-3. Model form for credit score disclosure exception for loans secured by one to four units of residential real property”).

What is this thing all about? Let’s dig in.

The form looks like this.

You are signing this because lenders are required to provide you with the credit score & credit history used when determining your eligibility for the loan and what rate they can offer. Credit scores are widely used for both qualification & loan pricing.

Let’s start at the top and go through it.

The first section relays your credit score, the Credit Reporting Agency (CRA) reporting that score and the date it was reported. This is the score used to qualify you for the mortgage and determine the interest rate you will pay. This section is the meat & potatoes of the form.

Next, the disclosure form provides some general information about credit scores. Essentially that the score reflects the CRA’s model for assessing your credit history. Low balances & an excellent payment record rule in…