Finance
A Mississippi borrower applies for a mortgage but is denied. Under the Equal Credit Opportunity Act (ECOA), the lender must:
AProvide an oral explanation only
BProvide a written adverse action notice explaining the reasons for denial within 30 days✓ Correct
CAllow the borrower to reapply immediately without restriction
DRefer the borrower to another lender
Explanation
ECOA requires lenders to provide written adverse action notices to credit applicants who are denied, with specific reasons for the denial, within 30 days of the credit decision. This allows borrowers to understand why they were denied and address the issues.
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