Loan Officer Practice Exam

How many days does a borrower have to request the reason for denial under Regulation B?

1. 45

2. 90

3. 60

4. 30

The correct answer is: 60

Under Regulation B, borrowers have a specific window of time to request the reason for denial after their application for credit has been rejected. This regulation, which implements the Equal Credit Opportunity Act (ECOA), provides borrowers with the right to understand why their application was denied. The timeframe established is 60 days from the date of receiving the notice of denial. This allows consumers to seek clarification or potentially address issues that led to the denial of their application, fostering transparency and accountability within the lending process. Understanding this timeframe is essential for both borrowers and loan officers, as it ensures compliance with fair lending practices.