Updated April 15, 2022
A mortgage adverse action notice is sent to an applicant that has been rejected based on their credit score or some other reason identified through a consumer report. The lender must provide a reason for the rejection and contact information for the applicant to receive a free copy of the consumer report within 60 days.
Laws – 15 U.S. Code § 1681m
Reasons for Denial
- Bad credit score
- Outstanding liabilities
- Not enough income
- Past bankruptcy (up to 10 years)
- Criminal record