Letter of Explanation (LOE): credit inquiry explanation

The Inquiry letter is used to explain all credit inquiries in the last 120 days. When the lender pulls credit OR when credit is automatically pulled at borrower submission.

 Notes:

• This is a deployment configuration, Blend will request an explanation for all other times that a credit report was pulled.

• For each unique date where there are inquiries, Blend will look at how many inquiries occurred on that date. If there are either 2 or 3 inquiries on that date, Blend will check to see if they came from different credit bureaus. If they do, then Blend will treat those 2 or 3 inquiries as the same and only request one single inquiry from the borrower. 

LOE Follow-Up workflow

1. The borrower will see the LOE - Inquiry process in their list of tasks to complete. Within the task, they will see all the inquiries they need to explain.

2. Upon selecting one of the inquiries, they'll be asked a series of questions about it. 

Various questions may require the borrower to select from multiple choice, a drop-down, or to enter in a dollar amount. 

Once the borrower completes this process and they see a green check mark next to the inquiry, they cannot edit their answers.

Once the borrower completes this process and they see a green check mark next to the inquiry, they cannot edit their answers.

After the borrower completes the LOE - Inquiry process, depending on what your lender requires, they will be prompted to sign the generated LOE - Inquiry. 

Borrower signature experience, if applicable

1. Borrower will receive an email to complete the credit inquiry signature request. 

2. Borrower can click Start this section to sign the document. 

3. Borrower will be asked to sign the document. 

4. Once they have signed the document, they can view it in their Documents section

View signed Letter of Explanation - lender experience

After the borrower completes the process, you can find a generated document with their explanations in the Docs tab. 

 Note: While you can view the document, you cannot edit the borrower's responses. 

DISCLAIMER: All mentioned features on this page may not be applicable to your institution, please reach out to Blend Support for more information on what features are enabled for your use.