I am not sure what "reason" to show on our Adverse Action Notice for denying a loan due to the high risk of debris flow (mud & water) on the property as disclosed in a hydrology report? Is the best option to indicate precisely that in "other"? We typically try to use a standard reason on the model form.

Without knowing what your standard reasons might be, that is an option. Unless you have something like unacceptable collateral.

Thank you!

We have an application for a mortgage loan wherein we would require the existing second lien to subordinate to our new first lien. However, the terms of the subordination are not acceptable under Agency and Investor guidelines, so we will decline the loan. Would "Other" be the best option for decline with a reason being: "Terms of Subordination Unacceptable"?

Telling them the specific reason is never a bad idea if it does not fit the normal cookie cutter preprinted answers and as long as you have proper controls in place to make sure that the reason listed is appropriate.

Thank you!