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The Real Deal
Consumers now have access to score
By Jean Newton
Thanks to the efforts of the California Association of Realtors, consumers will have a better idea of where they stand when they apply for a loan for a home. Landmark legislation sponsored by California Association of Realtors giving consumers access to their credit scores goes into effect July 1. Under the provisions of SB 1607 (Figueroa) "Credit Score Disclosure Legislation," California now has the most consumer-friendly law involving credit disclosure in America.
"California Realtors have dispelled the cloud of secrecy and confusion surrounding credit scores,""said California Association of Realtors President Gary Thomas. "In addition to providing consumers with their specific credit scores and key reasons why a score was not better, this new law also gives consumers the right to receive copies of their credit scores when they request copies of their credit file.
"We're proud that Realtors have once again demonstrated their commitment to helping California families purchase homes of their own," Thomas said. "This new law will help California consumers learn more about what is affecting their ability to get a home loan. The July 1 enactment of SB 1607 represents months of grassroots efforts last year by our Realtor members throughout the state.
"[California Association of Realtors'] efforts were the driving force that led to many of the nation's credit reporting companies to voluntarily disclose credit scores to consumers across the U.S.," Thomas continued. "[California Association of Realtors'] fight for consumers' right to receive their credit scores also sparked interest at the federal level encouraging credit score disclosure legislation."
The bill, authored by State Sen. Liz Figueroa, was signed into law by Gov. Gray Davis in September.
"Decisions by lenders about whether or not consumers get a loan, or, if they do get the loan, what interest rate they will pay, are being based on credit scores that are kept secret from them," said Figueroa. "Even a small difference in the interest rate charged by a lender can make or break a deal," she said. "SB 1607 is about empowering consumers with the information they need to protect themselves against erroneous or misleading credit information."
To access information about what makes up a credit score, commonly called a FICO score, consumers can check out the "reason codes" at the Fair, Isaac and Company (FICO) website at www.fairisaac.com.
In addition to California Association of Realtors, Consumers Union co-sponsored the legislation. The bill was supported by E-Loan and the California Association of Mortgage Brokers. The bill also enjoyed statewide bipartisan support of 17 Senate and Assembly co-authors as well as Attorney General Bill Lockyer, Privacy Rights Clearinghouse, National Association of Hispanic Real Estate Professionals, Chinese Real Estate Association of America, California Building Industry Association, Consumer Federation of California, Consumer Action, CalPIRG, American Association of Retired Persons, Neighbor to Neighbor, California Professional Firefighters, and Fair Housing of Marin.
The California Association of Realtors* (http://www.car.org) is one of the largest state trade organizations in the United States, with more than 97,000 members dedicated to the advancement of professionalism in real estate. California Association of Realtors is headquartered in Los Angeles.
Information provided in this column is presented by the Realtor members of the Silicon Valley Association of Realtors. Send questions on any topic to: Real Deal, c/o SILVAR, 345 San Antonio Road, Los Altos, CA 94022; call 650.949.9115; or email to ppompei@siliconvalley-realtors.org.
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