A mortgage company receives a credit report for a joint mortgage application with two borrowers. The company denies the loan based solely on one borrower's credit information. Regarding adverse action notices, the company must:
Correct Answer
A) Send notices to both borrowers since it was a joint application
Under FCRA Section 615 and Regulation B, when a joint application is denied based on credit report information, adverse action notices must be provided to all applicants, as they are all considered to have been subject to adverse action regardless of whose credit information caused the denial.
Why This Is the Correct Answer
Under FCRA Section 615 and Regulation B, when a joint application is denied based on credit report information, adverse action notices must be provided to all applicants, as they are all considered to have been subject to adverse action regardless of whose credit information caused the denial.
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