We believe that either your mortgage company or the TPO can issue the adverse action notice, and the notice should disclose each creditor involved in the adverse action decision.

Regulation B provides that when a loan application is made on behalf of an applicant to more than one creditor and no credit is offered (or the applicant does not expressly accept the credit offered), “each creditor taking adverse action must comply with this section, directly or through a third party” and a “notice given by a third party shall disclose the identity of each creditor on whose behalf the notice is given.”

The commentary to Regulation B states that if one notice is sent on behalf of multiple creditors, it must contain the name and address of each creditor and give the primary reasons for each creditor’s decision or disclose the applicant’s right to receive a statement of specific reasons within thirty days. The commentary also provides that if a single adverse action notice is sent to an applicant on behalf of multiple creditors under the jurisdiction of different enforcement agencies, “the notice need not name each agency; disclosure of any one of them will suffice.”

Consequently, we believe that your mortgage company or the TPO may issue the adverse action notice, provided that the notice also includes the name and address of each creditor taking adverse action and its reason for the action (or disclose the applicant’s right to receive a statement of specific reasons.) The letter may list your primary regulator or the TPO’s primary regulator if they are different.

For resources related to our guidance, please see:

• Regulation B, 12 CFR 1002.9(a)(1) (“A creditor shall notify an applicant of action taken within:

(i) 30 days after receiving a completed application concerning the creditor's approval of, counteroffer to, or adverse action on the application;

(ii) 30 days after taking adverse action on an incomplete application, unless notice is provided in accordance with paragraph (c) of this section;

(iii) 30 days after taking adverse action on an existing account; or

(iv) 90 days after notifying the applicant of a counteroffer if the applicant does not expressly accept or use the credit offered.”)

• Regulation B, 12 CFR 1002.9(g) (“When an application is made on behalf of an applicant to more than one creditor and the applicant expressly accepts or uses credit offered by one of the creditors, notification of action taken by any of the other creditors is not required. If no credit is offered or if the applicant does not expressly accept or use the credit offered, each creditor taking adverse action must comply with this section, directly or through a third party. A notice given by a third party shall disclose the identity of each creditor on whose behalf the notice is given.”)

• Regulation B, Official Interpretations, Paragraph 9(g), Comment 1 (“The notification of adverse action may be given by one of the creditors to whom an application was submitted, or by a noncreditor third party. If one notification is provided on behalf of multiple creditors, the notice must contain the name and address of each creditor. The notice must either disclose the applicant's right to a statement of specific reasons within 30 days, or give the primary reasons each creditor relied upon in taking the adverse action – clearly indicating which reasons relate to which creditor.”)

• Regulation B, Official Interpretations, Paragraph 9(g), Comment 2 (“If a single adverse action notice is being provided to an applicant on behalf of several creditors and they are under the jurisdiction of different Federal enforcement agencies, the notice need not name each agency; disclosure of any one of them will suffice.”)