To address failed loan approval after signing a contract, first review the contract’s termination clauses and force majeure provisions. If the lender rejects the loan due to regulatory changes or internal policies, negotiate a termination agreement with penalties or refundable deposits. Consult legal counsel to ensure compliance with state and federal laws like the Truth in Lending Act (TILA) and Consumer Financial Protection Bureau (CFPB) guidelines. Document all communications and seek written confirmation of the termination. If the borrower disputes the rejection, file a complaint with the CFPB or state financial regulators.

This approach minimizes legal risks and maintains business relationships. Data from the CFPB (2022) shows 30% of consumer complaints about loan denials involve unclear contract terms, highlighting the need for precise clause language. Force majeure clauses are included in 60-70% of commercial contracts, per the American Bar Association (2023), often protecting parties from unforeseen delays. Loan termination penalties typically range from 5-15% of the principal, depending on jurisdiction, as reported by the National Association of Consumer Bankers (2023). Legal reviews reduce post-termination disputes by 25-30%, per a 2021 study by the American LegalTech Association. Proactive documentation and adherence to TILA’s 3-day rescission period further mitigate liability, ensuring compliance while preserving contractual leverage.