Answer:
(a) Notification of action taken, ECOA notice, and statement of specific reasons-(1) When notification is required. A creditor shall notify an applicant of action taken within:
(i) 30 days after receiving a completed application concerning the creditor's approval of, counteroffer to, or adverse action on the application;
[Once you have all the necessary information to make your credit decision you must communicate your decision to the applicant within 30 days from that date.]
(ii) 30 days after taking adverse action on an incomplete application, unless notice is provided in accordance with paragraph (c) of this section;
[If you have an incomplete application you should deny the request within 30 days from receipt of the application or send the notice of incompleteness. Once you take adverse action on the incomplete application you have 30 days to notify them of the decision. If you have provided the notice of incompleteness within 30 days of the application you have no further notification requirements.]
(iii) 30 days after taking adverse action on an existing account; or
[You must inform the applicant of your adverse action on their existing account within 30 days of that decision.]
(iv) 90 days after notifying the applicant of a counteroffer if the applicant does not expressly accept or use the credit offered.
[If you give a counteroffer and it is not accepted (the loan is consummated) within 90 days from when you provided the counteroffer (regardless if verbal or written) you must provide the applicant an AAN with the reasons the original request was not approved as applied for. If you provided the combined AAN and counteroffer disclosure no further notification is required.]
First published on BankersOnline.com 6/25/12
print
share