As far as the nutcase accusing you of stealing I’d tell her “yes !” 

Make sure your have your criteria written down somewhere, so you can refer to it if there is ever an accusation of discrimination.Lastly, if you denied the applicant because of the results of a credit/background check you did, you are required by FCRA law to give them an "adverse action letter"; Google it for your home state to find details how you must proceed in this case.

It makes it clear that if the deal gets in trouble, the borrower is likely to walk leaving the lender holding the bag, rather than make every possible effort to to make the lender whole, even if years later.This is not an accusation, simply a non-sugar-coated response to your question. 

I found out in the last few years she got accused even of hiding assets in court. 

But remember these are only guidelines and there is the potential to be accused of violating FHL.

If they do want to pursue legal action, you have no worries if you've done nothing wrong right....the burden of proof is on the accuser. 

Do not fight with her or be in person with her if you are planning to involve the police as she might through some false accusations against you and police sometimes can be gender biased and take her back.

You don't have the sanctioning right to accuse someone of perjury.

Hi, looking for tips to handle tenant accusing next door neighbor of 1) lets dogs offleash in cul-de-sac, 2) doesn’t pick waste & 3) son tramples on her plants. 1&2 true and ongoing issues from when my family lived in the neighborhood.  

@Andrew C HammesThat definitely is a good way of being mortgage free and accusing some rentals but my current home is on a acreage/farm so I won’t be selling it or renting it out anytime soon.