Compliance Alliance Q&A 1-10-18
What additional requirements do we have after issuing an LE if the applicant never responds?
There are not additional requirements for Regulation Z after you issue the LE if the applicant never indicates an intention to proceed with the loan. However, Regulation B (ECOA) requirements are not met simply by issuing an LE. Regulation B requires the lender to respond to the applicant within 30 days of receiving the application or taking adverse action on an incomplete application. If the application is incomplete, the lender must either notify the applicant that the application is incomplete within 30 days of receiving the application or provide an adverse action notice within 30 days of taking the adverse action on the incomplete application. If the application is complete, the lender must communicate to the applicant within 30 days that the loan was approved (this can be express or implied), was denied (adverse action notice), or make a counteroffer. If a counteroffer is made, the lender must notify the applicant of action taken within 90 days of making the counteroffer if the applicant does not expressly accept or use the counteroffer.
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