When a multifamily borrower with an Enterprise-backed mortgage denies a rental application, the Federal Housing Finance Agency (FHFA) strongly encourages the borrower to:
- Provide written adverse action notices to applicants; and
- Provide applicants a copy of any consumer screening report relied on when making an adverse action determination.
A written notice paired with a report copy allows the borrower to demonstrate they have fulfilled their legal obligations under the Fair Credit Reporting Act (FCRA), and also permits rental applicants to understand the basis for any denial, fully assert their rights with tenant screening companies, and more effectively correct their records. Read more in a statement from FHFA.
