Answer:
The second checkbox is checked in Part II of the adverse action notice if, according to the FCRA, the credit is denied either wholly or partly because of information obtained from a person other than a consumer reporting agency bearing upon the consumer's credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living. The issue of whether an appraiser is such a third party has been the subject of disagreement. We believe an appraiser is such a third party since the appraisal impacts the consumer's credit capacity. A borrower's credit capacity is generally higher in a secured transaction.
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