If a consumer explicitly agrees to a modification in terms of a HELOC, such as a reduction in the line amount, must an Adverse Action Notice be delivered since the change could be considered "unfavorable?"

1002.2(c)
"(2) The term does not include:
(i) A change in the terms of an account expressly agreed to by an applicant;"

There is a difference between acknowledging a change the bank is making and expressly agreeing to it, but based on how you are describing it, it sounds like an Adverse Action Notice would not be required. Also note that if the account is currently deliquent, there is another provision that would cover this (and remove it from the definition of an adverse action).

I assume if the borrower "explicitly agrees" that they are signing a legal modification. In that case, IR is correct.