Federal Mortgage LawsQuestion 12 of 400
A lender denies a mortgage application partly because of information in the applicant's credit report. Under the Fair Credit Reporting Act, the lender must provide the applicant with:
a.A copy of the lender's underwriting guidelines
b.A refund of the application fee
c.A risk-based pricing or adverse action notice identifying the credit reporting agency used
d.A new credit report prepared by the lender
Explanation
FCRA requires an adverse action notice when a credit report contributes to a denial or less favorable terms; it must identify the consumer reporting agency and inform the applicant of the right to a free report and to dispute inaccuracies. The lender need not disclose underwriting guidelines, refund fees, or generate its own report. This works alongside ECOA's adverse action requirements.
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