Notice of Adverse Action

Posted By: Joanna

Notice of Adverse Action - 04/25/16 02:05 PM

If a consumer is denied based on "excessive obligations in relations to income" would the key factors be listed?
Posted By: Joanna

Re: Notice of Adverse Action - 04/25/16 06:58 PM

Would we even send an adverse notice for this reason? Since the reason isn't due to their score, would we send a different letter stating excessive obligation?
Posted By: osucpa

Re: Notice of Adverse Action - 04/25/16 07:10 PM

Is your consumer underwriting decision based strictly on credit score?
Posted By: Joanna

Re: Notice of Adverse Action - 04/25/16 07:28 PM

We have a matrix we follow with the credit score...if it's to the lower side secured or unsecured then we would do DTI.
Posted By: TMatt87

Re: Notice of Adverse Action - 04/25/16 11:03 PM

We do send the notice with the denial reasons when we decline for excessive obligations based on the fact that we used the credit report to determine the level of obligations. If you use the credit report in any way in your decision, you must report the reasons for denial.