When does ECOA require that you advise the borrower about the status of his/her application?

When does ECOA require that you advise the borrower about the status of his/her application?

• A. Within one week
• B. Within three days
• C. Within 30 days
• D. Within 90 days

Answer: (C)

The correct choice is based on the guidelines set forth by the Equal Credit Opportunity Act (ECOA). Under ECOA, lenders are required to notify borrowers about the action taken on their application for credit within 30 days after receiving a complete application. This means that once an application is submitted and all necessary information is obtained, the lender is obliged to provide the borrower with an update regarding whether the application has been approved, denied, or if further information is needed. The 30-day requirement ensures that borrowers are kept informed about their application status in a timely manner, allowing them to make informed decisions regarding their financial options. This provision is crucial for promoting transparency and fairness in the lending process, as it empowers borrowers by keeping them in the loop and providing clarity on their credit applications.

The correct choice is based on the guidelines set forth by the Equal Credit Opportunity Act (ECOA). Under ECOA, lenders are required to notify borrowers about the action taken on their application for credit within 30 days after receiving a complete application. This means that once an application is submitted and all necessary information is obtained, the lender is obliged to provide the borrower with an update regarding whether the application has been approved, denied, or if further information is needed.

The 30-day requirement ensures that borrowers are kept informed about their application status in a timely manner, allowing them to make informed decisions regarding their financial options. This provision is crucial for promoting transparency and fairness in the lending process, as it empowers borrowers by keeping them in the loop and providing clarity on their credit applications.