Which statement about the required denial notice is accurate?

The required denial notice must provide reasons for the denial, in accordance with consumer lending regulations. This requirement is rooted in the Fair Credit Reporting Act (FCRA) and the Equal Credit Opportunity Act (ECOA), which mandate that consumers be informed not only of the fact that their application has been denied but also the specific reasons for the denial. This transparency allows consumers to understand the basis for the decision and gives them the opportunity to address any issues that may have contributed to the denial, thus promoting fairness and accountability in lending practices.

The other options do not align with the regulatory requirements: denial notices are not limited to electronic formats; they must be communicated clearly, often in writing but can also be verbally, as long as follow-up procedures are met; the applicant's consent is not necessary for sending a denial notice; and the sending of a denial notice is not optional, as it is a legal obligation for lenders.