We had someone apply for a loan, the officer told him he was denied 2 days after applicaiton. In the process of sending the paperwork to get the denial letter issued and sent out, he passed away. I am probably over thinking this... Should we finish the Adverse Action letter and mail it out?

Personally, I would not. I would document the file. No use disturbing the remainder of the family.

Thanks

Good advice. If you're still uneasy with a conclusion that might be questioned at some future date, look at it this way: the applicant is no longer a "consumer" (a natural person) and the credit request no longer meets the definition of "consumer credit."