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#2261753 - 10/28/21 03:10 PM Denial Reasons- Other
COMPL101TX Offline
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Joined: Apr 2018
Posts: 108
How would you report the Reason for Denial when the application is denied for "Unacceptable Property"? We use a denial notice similar to the Reg .B model form but it has additional check boxes, and Unacceptable Property is one of them. This reason is not under "Other" on the form. Would you report as Code 4- Collateral (Value or type of collateral not sufficient) or as Code 9-Other and enter the reason in the free form field?

Similarly, an application was denied due to "Proportion of Balances to Credit Limit" but this reason was entered under the "Other" field of the denial notice. Would you report as Code 9-Other or place it under Code 3-Credit History?

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#2261754 - 10/28/21 03:21 PM Re: Denial Reasons- Other COMPL101TX
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
You are denying the loan due to collateral - you would report Code 4 - Collateral

Proportion of Balances to Credit Limit would IMO be credit related - Code 3 - Credit History


Keep in mind you don't have to be as specific for the denial reason on the HMDA data as you do the AAN. I try to avoid using other if at all possible.
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The opinions expressed are mine and they are not to be taken as legal advice.

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