If we deny a loan because the applicant didn't give us all the required information is it sufficient to state the reason for denial as "credit application incomplete" or must we provide more specific reasons related to the criteria that we couldn't verify because of the missing information?

You have two options.

1. Deny the application using credit application incomplete as the reason.

2. Send a notice of incompleteness (discussed in 202.9) describing the information needed and date by which they must return it or no further action will be taken on the request.

In some cases the notice of incompleteness was never sent, so we have no choice but to approve, deny, or counter. Usually these are denied. Since Reg B states you must provide the specific reason I wasn't sure if "incomplete" is specific enough.