Finance
A Montana borrower's loan application is denied due to information in their credit report. Under the Equal Credit Opportunity Act (ECOA), the lender must:
AProvide a verbal explanation within 10 days
BProvide an adverse action notice specifying the reasons for denial within 30 days✓ Correct
CAllow the borrower to reapply immediately with a co-signer
DRetain the information for internal purposes only
Explanation
ECOA requires lenders to provide an adverse action notice to applicants whose credit applications are denied, explaining the specific reasons for the denial. This notice must be provided within 30 days.
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