12/15/2014
We have a customer that filled out one application. He wanted a fixed rate loan. We pulled credit and have to deny him because of his credit. We sent out a adverse action within the timeline. Now he wants to see if he qualifies for an in house balloon loan. He does not qualify for that either. No change of circumstance or counter offer was done. Everything was verbal. Do we need to send out another adverse action notice with only one application?
02/10/2014
If I have a customer that was not declined for credit reasons, but was declined based on information from his appraisal, would our customer be declined from information obtained by a third party (i.e. an appraiser)?
06/10/2013
I know that adverse action notices are required on indirect lending contracts we deny, but are Adverse Action notices required when we submit a counteroffer that is not accepted?
05/13/2013
We had a customer wanting to know if she could qualify for 100% financing. We had her sign a credit authorization. Her scores were not high enough to qualify for the 100% financing. We did not take an application - adverse action necessary?
05/13/2013
We have issued a counter offer to a borrower and a co-borrower. The co-borrower accepted and we closed the loan without the borrower. Do we need to do an adverse action for the borrower?
03/04/2013
The Fair Credit Reporting Act requires that each applicant (assuming there is a co-applicant) receive an FCRA adverse action notice in the event of an adverse action. Assume that there is a joint application for an installment loan, not secured by real estate (auto loan for example). The loan is denied because after a review of the credit reports of both applicants, the primary applicant previously filed for bankruptcy and the co-applicant has delinquent obligations with creditors. Should each separate notice provided to the applicant and co-applicant only list the reasons specific to their own credit history? In other words, should the applicant's notice only reference the bankruptcy and the co-applicant's notice only reference the delinquent credit obligations? My reasoning for feeling this way is that 1. it protects the privacy of the applicant and co-applicant and 2. it will better inform the applicant and co-applicant of what specific reasons were used in their denial so that each individual may correct them in order to secure the credit in the future. I understand only one would need an ECOA notice but my concern comes specifically from FCRA notice requirements.
01/28/2013
In an indirect lending situation if you decline an applicant for delinquent credit and the same day the application comes back in with no changes other than the collateral is a subsequent adverse action notice needed?
01/14/2013
A borrower does not meet VA (or FHA) net tangible benefit for refinancing. What would be an appropriate reason for Statement of Denial?
01/07/2013
I have a question regarding Notification of action taken. Is the 30 days required to notify a borrower of adverse action counted from the actual application date or when an application is complete (such as when the appraisal comes back and is the value is not sufficient)?
11/19/2012
For adverse action notices where the loan requested would not have been secured by consumer real estate, is the credit score exception notice still required?