SAFE MLO Privacy, Marketing, AML & Other Federal Laws question: notice include under the FCRA

SAFE MLOPrivacy, Marketing, AML & Other Federal Laws

A lender denies a mortgage application partly because of information in the applicant's credit report. Which item must the adverse action notice include under the FCRA?

A The underwriter's personal notes explaining how the file was evaluated
B A copy of the full credit report
C The right to a free credit report within 30 days
D The credit score used and the key factors that hurt it

Show the answer and explanation

Answer: D. The credit score used and the key factors that hurt it

When adverse action is based in whole or in part on a consumer report, the notice must include the credit score used and key factors that adversely affected it, the name and contact details of the consumer reporting agency, a statement that the agency did not make the decision, and the consumer's right to a free report if requested within 60 days and to dispute (15 U.S.C. 1681m(a)). A copy of the report is not required to be attached, and the free-report window is 60 days, not 30. Source: 15 U.S.C. 1681m(a); FCRA section 615 (as at 11 Oct 2026).

Common mistake

Thinking the lender must attach the credit report to the denial notice.

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Original study material mapped to the public NMLS Content Outline; not a real test question.Not affiliated with or endorsed by NMLS, CSBS or SRR. Verify figures and rules against current guidance before relying on them.