Chapter 22 – Property Management

The 15th Edition of Modern Real Estate Practice in Texas was published in November 2011.  Updates to the content of Chapter 22 include:

Responsibility of Brokers for Property Management Activities: A broker is responsible for any property management activity and for all advertising conducted by sponsored salespersons.  (TREC Rule 535)  Refer to the TREC-mandated textbook for the MCE Broker Responsibility course, pages 11 and 26:  http://www.trec.state.tx.us/pdf/education/BrokerResponsiblityCourse-Edition_1.0.pdf

Fair Credit Reporting Act and Dodd-Frank Wall Street Reform:  The Dodd-Frank Wall Street Reform and Consumer Protection Act (2011) amended the FCRA to require the disclosure of the credit score when an adverse action (such as a decision not to rent to an applicant) is based in whole or in part on a numerical credit score.  This new disclosure requirement applies to “credit scores” and not other types of scores, such as those used by many tenant screening companies. If the rejection was based on an applicant’s specific credit score, the “adverse action notice” must include specific “credit score disclosures”:
1.  the credit score used by the person in making the credit decision;
2.  the range of possible credit scores under the model used to generate the credit score;
3.  the top four key factors that adversely affected the applicant’s credit score;
4.  the date on which the credit score was created; and
5.  the name of the consumer reporting agency or other person who provided the credit score.
6.  a statement that a credit score is a number that takes into account information in a consumer report and that a credit score can change over time to reflect changes in the consumer’s credit history.
(National Apartment Association.  “NAA/NMHC Guidance: Using Consumer Credit Reports in the Rental Screening Process; Adverse Action, Risk-Based Pricing and Credit Score Disclosure Obligations,” 2011.) 

Page updated:  April 16, 2013

 
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© 2009 Cheryl Nance. All Rights Reserved.

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