Adverse action is the same as a loan denial.  Creditors, mortgage lenders and banks, must advise applicants in writing the reason for declining a borrowers request for credit.  If the reason for denial is based on information contained in a credit report, the applicant is entitled to review without charge a copy of his or her credit report.  Reasons for a mortgage loan denial may include insufficient income, derogatory credit, insufficient assets or funds to close or an incomplete application.

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