The Impact of Dodd-Frank on Resident Screening and Adverse Action Letters

In recent years, we’ve seen AIG’s liquidity crisis, Lehman Brothers’ bankruptcy, the subprime mortgage meltdown and resulting Troubled Asset Relief Program (TARP), and the Dodd-Frank Wall Street Reform and Consumer Protection Act passed last year.

As it relates to applicant screening for apartment owners and property managers, there hasn’t been much new legislative news in the past 20 years. Sure, we had the USA PATRIOT Act, FACT Act, and the Red Flag rules that helped fight terrorism and identity theft, but otherwise it has been pretty straightforward. For 30 years or so, the multifamily industry’s primary regulatory responsibility has been to provide applicants a letter explaining their Fair Credit rights when adverse action is taken.

The Impact of Dodd-Frank on Resident Screening and Adverse Action Letters