FinanceIntermediateColorado Exam

A Colorado buyer who is rejected for a mortgage loan is entitled under the Equal Credit Opportunity Act (ECOA) to receive:

AA. No explanation
BB. A written statement of reasons for denial within 30 days of the applicationCorrect
CC. A list of all other lenders who might approve them, across most transactions
DD. Free credit counseling from the lender

Why B. A written statement of reasons for denial within 30 days of the application Is Correct

Answer B: B. A written statement of reasons for denial within 30 days of the application

Under ECOA, if a creditor denies a credit application, the applicant is entitled to receive a written statement of the specific reasons for the denial (or a notice of their right to request such reasons) within 30 days of the adverse action. This allows applicants to understand and potentially address the reasons for denial.

Exam Tip: Finance

Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.

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