We have a customer (sole proprietor) who wants to apply for a loan, and he has stated that he has some "blemishes" on his credit report. Because of this, he doesn't want us to pull a credit report (thereby showing an inquiry), and would like to just bring us a copy that he obtained himself. The loan officer indicated that she would eventually need to run one. However, if she only reviews the one the borrower gives her and wants to decline him based upon the information she sees on there, how does this affect disclosures on the adverse action notice? Does she have to run one herself no matter what?

This doesn't answer your question - but what you described almost screams "Red Flag" all over it. I'm always VERY cautious anytime a customer (or applicant) doesn't want the Bank to (take your pick) 1) Pull a credit report; 2) tell the son or daughter that they will guaranty the loan; 3) don't call the employer to verify employment because they are not to receive personal phone calls; 4) verify spouse's salary even though the applicant wants to rely on that income because they want the car to be a surprise....

It only seems to go down hill from there.

When the customer brings in the report, you are getting information from the customer, not the credit bureau. If that contains grounds for denial, you would state that the denial is based on the information the customer provided to you. But I agree with Bonnie -- this application sounds like trouble!