Sec 1-Page 45

A borrower applies for a 30-year fixed-rate mortgage at a specific interest rate and loan amount. After reviewing the file, the lender determines the borrower qualifies only under different loan terms with a higher interest rate and lower loan amount.

Under ECOA, which action should the lender generally take?

A lender issues a written counteroffer to a mortgage applicant after determining the borrower qualifies only under modified loan terms. The lender requests that the borrower indicate acceptance of the revised terms.

Which ECOA guideline applies?

A borrower receives a written counteroffer from a lender but never accepts the revised loan terms. More than 90 business days pass without borrower acceptance.

According to ECOA procedures, which action should generally follow?

A lender reviewing a mortgage application determines that several required financial documents are missing. The underwriter informs the borrower that the loan cannot be processed further until the additional information is received.

Which ECOA document should the lender generally provide?

A lender sends a Notice of Incompleteness to a borrower requesting additional income documentation and bank statements needed to continue processing the mortgage application.

Under ECOA guidelines, what additional information should generally be included in the notice?

A borrower receives a Notice of Incompleteness requesting additional documentation needed to process a mortgage application. The borrower fails to provide the requested information within the allotted timeframe.

Which action should the lender generally take?