Record the reason the loan did not close, confirm that any required notice has gone out, and then follow up differently for each reason: a denial, a withdrawal, a lost contract, or a borrower who chose another lender. GoHighLevel can hold the reason as a field and send only the follow up that fits. The bottom line: a denied borrower who gets a promotional text before the notice is sent is a complaint, and a borrower whose contract fell through is often a purchase that is still going to happen.
The notice comes first
Under Regulation B, a creditor must notify the applicant of action taken on a completed application within 30 days of receiving it, whether it is an approval, a counteroffer, or an adverse action. Summaries add that notice is due within 30 days of taking adverse action on an incomplete application, or the creditor can send a notice of incompleteness, and within 90 days of a counteroffer the applicant does not accept. An adverse action notice generally must state the action taken, name the creditor, include the ECOA notice, identify the federal regulator, and give the specific reasons or the right to request them within 60 days. The creditor, usually the lender, sends it. The broker's job is to know whether it went out, and to say nothing in a follow up that contradicts it.
Four endings, four follow ups
| Reason | What happened | Follow up |
|---|---|---|
| Denied or counteroffer declined | The lender took adverse action | After the notice is confirmed, one message offering a call about what could change, with no credit repair promises, and a task for the loan officer |
| Borrower withdrew | The borrower ended the application | One message after 30 days asking whether plans have changed |
| Contract fell through | The purchase ended, the buyer is still looking | A check in at 14 days and at 45 days, tied to the pre approval date |
| Chose another lender | Lost the loan | A short thank you, and a note that you are available for the next deal |
What the message must not do
Do not restate the reasons for a denial in a text, since the notice contains them and a text is not a secure place for credit information. Do not promise that a borrower will qualify later, and do not suggest that a particular action will fix a credit problem. If a follow up discusses what could change, make it a conversation with a loan officer who has the file.
Build it in HighLevel
- Add a Lost reason dropdown to the opportunity with the four endings above, and require it when the opportunity is marked lost.
- Add an opportunity field Adverse action notice sent and a task for the lender contact due 25 days after the completed application date.
- Use the Opportunity Changed trigger on the Lost status to start a workflow and branch with an If/Else on Lost reason.
- For denials, create a task to confirm the notice, and send no message until the field says Yes.
- For the other branches, send the matching message after the wait shown in the table, and stop when the person replies.
- Add a Custom Date Reminder 90 days after the lost date to create a task for the loan officer to decide whether a check in makes sense.
- Keep marketing consent separate: only a contact with consent receives anything beyond a reply to their own application.
Messages, written out
Denial, after the notice is confirmed: Hi Chris, this is Dana at [Brokerage]. I know the outcome on your application was not what you wanted. If you would like to talk through what could change for a future application, I am happy to have that conversation. Reply STOP to stop messages. Contract fell through: Hi Chris, Dana at [Brokerage]. I am sorry the purchase did not work out. If you are still looking, your pre approval can be refreshed quickly, and I can call whenever works for you.
Worked example
A broker who takes 60 applications a month and sees 12 not close (20 percent) tracks 12 notices or follow ups that month. If 4 of those are denials, the 4 tasks to confirm the notice exist before any message does. If the 8 others are contracts that fell through or withdrawals, the 14 day and 45 day check ins reach those buyers while they are still searching. The 20 percent is an assumption, so use your own pull through.
Why the reason field is the real asset
After a few months, the Lost reason field answers questions that guessing cannot. If most lost loans are contracts that fell through, the pre approval date and the check in cadence matter most. If many are borrowers who chose another lender, the problem is the first call or the quote speed, and the fix lives in our guide on texting a rate shopper who requested a quote. If denials cluster around one document or one condition, the file checklist needs a step earlier. A reason recorded at the moment the loan is marked lost is more accurate than one reconstructed later, so make the field required and short.
Keeping the follow up from becoming pressure
A loan that did not close is often a disappointment for the borrower, so the follow up should be rare and calm. Send at most two messages in the first 90 days, stop at the first reply, and let the loan officer decide on any later contact. A borrower who is left alone after a denial is more likely to come back than one who is chased.
How this was handled before
A file marked lost went into a folder, and a follow up happened only if the loan officer remembered the person. Notices depended on the lender, and the broker often did not know whether one had been sent. A reason field and a confirmation task make both visible.
What to measure
Track loans lost by reason, notices confirmed within 25 days, check ins sent, borrowers who returned within 6 months, and complaints. The notice confirmation rate should be 100 percent.
Questions people ask
How long does a lender have to send an adverse action notice?
Under Regulation B, within 30 days after receiving a completed application, with related timelines for incomplete applications and counteroffers.
Should a broker text a denied borrower the reasons?
No. The notice contains the reasons, and a text is not a secure place for credit information. Offer a call instead.
When should a broker follow up after a lost contract?
A check in at about 14 days and again at about 45 days works for buyers who are still searching, tied to the pre approval date.
To build the lost reason workflow, start a GoHighLevel account here. Opportunities and workflows are shown together in our capabilities demo.