Loan Officer Practice Exam

How many calendar days must lenders notify applicants of their credit status after adverse action on an incomplete application, according to Regulation B?

1. 30

2. 45

3. 60

4. 15

The correct answer is: 30

Regulation B, which implements the Equal Credit Opportunity Act (ECOA), requires lenders to notify applicants of their credit status after taking adverse action on an incomplete application. When an application is deemed incomplete, lenders have a specific timeframe within which they must inform applicants of their credit status, which is set at 30 calendar days. This regulation is designed to ensure transparency and fairness in lending practices, giving applicants the opportunity to understand how their application status is impacted and to take potential corrective actions if necessary. The 30-day notification rule thereby emphasizes the importance of timely communication in the lending process.