I have a question regarding what information should be on an AAN. If you have a joint application that is denied and the denial reasons are different for each of the borrowers do you put the different reasons on each notice or all reasons on both notices (if you send to both borrowers)? Our typical way of doing things is to list reasons for denial separately for each borrower. We send to each borrower. They also get the credit score information as well, individually if it was a contributing factor to decision.

I am questioning this because I was told recently that the AAN denial reasons should match on both notices if you send one to each applicant and only the credit score information is individualized.

If reasons should be the same for both notices is there something specific in the Reg that I'm missing. I have read the AAN information in the Reg and am not seeing anything that answers this particular question. If we need to correct how we're doing these I will need proof from the Reg to show my supervisor.

Any information would be great.

Thank you

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Also, 1002.9 and its Commentary is clear in its requirements that the specific reasons have to be disclosed. That includes all reasons you are denying the person whether it be based on their information or their co-applicant's information.

You can also read the pre-amble to the 2004 changes to Reg B.

The legislative history of the requirement to provide specific reasons for adverse
action indicates that the purposes of the disclosure are to help achieve the antidiscrimination
goals of the ECOA and to educate and inform consumers. These dual
purposes are served by the clarification in § 202.9(b)(2). For example, the disclosure
may discourage a creditor from discriminating based on a co-applicant’s or guarantor’s
race, sex, age, or other prohibited basis. Also, the disclosure may help educate and
inform applicants, co-applicants, or guarantors as to reasons for denial that are not
apparent from looking at their credit report.
Many commenters were concerned about the co-applicant’s or guarantor’s
privacy when the reasons for adverse action pertaining to creditworthiness are given to
the primary applicant. When a person agrees to be a co-applicant, guarantor, or similar
party, however, there is (or should be) a general understanding that information will be
shared. Accordingly, the rule has been adopted as proposed.

I guess my confusion is that is it wrong to list the reasons for denial separately on two different notices. We do list ALL reasons for denial. Primary applicant reasons could be debt to income and length of employment and co-applicant reasons could be bankruptcy and delinquent past or present obligations with others. We just separate them. Primary applicant doesn't know co-applicants reasons and vice versa. Is this wrong according to the reg? I don't see that it is and we have never been questioned by examiners, either, but just want further clarification if we are doing this incorrectly and need to change our notices.

We understand that privacy is not a factor in the ECOA portion, but trying to eliminate confusion on the borrowers end of questioning why they have reasons that make no sense to them as individuals.

Primary applicant doesn't know co-applicants reasons and vice versa. Is this wrong according to the reg?

Yes. Both applicants are being denied based on their individual and joint information. If the applicant's request is being denied due to the co-applicant's bankruptcy then you must disclose that fact to the applicant.