Sec 1-Page 49 2

A creditor receives a completed mortgage application and determines the borrower does not qualify under the lender’s underwriting standards. The lender decides to deny the application.

Under ECOA, within what timeframe must the creditor generally mail a written adverse action notice?

A lender sends a borrower a Notice of Incompleteness requesting additional income documentation needed to process a mortgage application. The borrower fails to provide the requested information by the deadline established in the notice.

Under ECOA, when must the lender generally mail the adverse action notice?

A creditor takes unfavorable action on an existing borrower account by reducing available credit due to circumstances permitted under the account agreement.

Under ECOA, what notification requirement generally applies?

A borrower applies for credit by telephone. During the call, the creditor declines the request and attempts to obtain the applicant’s mailing address in order to provide the required adverse action notice. The applicant refuses to provide a name or address.

Under ECOA, which statement is correct?

A lender provides a mortgage applicant with a written counteroffer after determining the borrower qualifies only under modified loan terms. The borrower neither accepts nor uses the offered credit.

Under ECOA, when must the lender generally provide the written adverse action notice?