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The Mortgage Loan Denial Letter is a crucial document in the lending process, required when a financial institution in Malta decides not to proceed with a mortgage loan application. This document must adhere to strict regulatory requirements under Maltese banking laws and EU directives, particularly regarding transparency and fair lending practices. It serves multiple purposes: communicating the denial decision, providing legally required explanations, maintaining institutional compliance, and offering guidance to applicants. The letter must include specific elements such as the reason for denial, appeal rights, and alternative options, while ensuring all communication meets the standards set by the Malta Financial Services Authority (MFSA) and EU banking regulations. This document is particularly important in maintaining clear documentation of lending decisions and protecting both the institution and the applicant's rights under applicable laws.

1. Bank Details and Letter Date: Official letterhead with bank's details and current date

2. Applicant Information: Full name and address of the loan applicant

3. Application Reference: Loan application number and date of application

4. Decision Statement: Clear statement of the loan denial decision

5. Reason for Denial: Specific reasons for the loan application denial, ensuring compliance with fair lending practices

6. FCRA Notice: Information about the applicant's right to request a copy of their credit report

7. Appeal Rights: Information about the applicant's right to appeal the decision and the process for doing so

8. Alternative Options: Suggestions for alternative financing options or steps the applicant might take

9. Contact Information: Details of whom to contact for questions or additional information

10. Signature Block: Name and title of the authorized bank representative