While the 1071 requirements are part of Regulation B, not everything lines up perfectly. For instance, 1071 requires you to report …the principal reason or reasons the financial institution denied the covered application. You may recall that the adverse action notice model form found in Appendix C includes a listing of possible denial reasons; however, the specific 1071 codes to be used for reporting the denial reasons do not match up exactly.
We’ve put together a “Denial Reasons Comparison Chart (Version 1.0) ” to assist you in determining which 1071 codes to report, based on the sample denial reasons provided in Appendix C. It is available now in our Free Lending Tools.
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Jerod explains the chart more here:
Stay tuned as we have more Section 1071 tools in process!
Published
2024/07/19