Which act requires the lender to provide the borrower a reason for rejection of credit in writing within 30 days of loan application?

The Equal Credit Opportunity Act (ECOA) mandates that lenders provide a written notice to borrowers if their credit application is denied. Specifically, it requires that borrowers receive an explanation for the rejection of credit within 30 days following the date of their loan application. This provision is designed to promote transparency and fairness in lending practices, ensuring that applicants are made aware of the reasons for their credit denials.

By requiring this notification, the ECOA helps to prevent discrimination and allows borrowers to understand the aspects of their creditworthiness that may have influenced the lender's decision. It provides a crucial safeguard for consumers, promoting equitable treatment in credit transactions. Other laws listed, while also important in the realm of lending and housing, do not specifically address the requirement for lenders to notify borrowers regarding the reasons for credit denial.