Leasing License Practice Exam

According to the Fair Credit Reporting Act, what must landlords provide if they deny housing to a prospect?

1. A list of available housing options

2. A letter explaining the denial

3. An appeal form

4. Access to their credit report

The correct answer is: A letter explaining the denial

Landlords are required to provide a letter explaining the denial of housing to a prospective tenant according to the Fair Credit Reporting Act (FCRA). This requirement ensures transparency in the decision-making process and allows applicants to understand the specific reasons for the denial, especially if the decision was influenced by information obtained from a credit report or screening process. The letter should inform the applicant of the factors that contributed to the denial, such as insufficient credit history or negative marks on their credit report, as well as their rights under the FCRA. This fosters good faith efforts in the rental process and empowers tenants with the information they might need to address any issues or errors in their credit history before applying for housing elsewhere. While other options might seem relevant, they do not align with the specific requirements of the FCRA regarding denial of housing. For instance, providing a list of available housing options or an appeal form is not mandated, and landlords are not obligated to grant access to the prospect's credit report directly; instead, they must provide information on how the applicant can obtain their report if it was used in the decision-making process.