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#2179802 - 05/25/18 02:00 PM
Counteroffer accepted immediately--sending notice
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100 Club
Joined: Oct 2014
Posts: 151
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We do a lot of indirect auto loans, and they have a very quick turnaround time. Occasionally we'll notify the dealer that we can't do a loan under the terms requested, but we can under other terms--in short, we make a counteroffer. Oftentimes the customer will accept the counteroffer immediately, the deal will close, and the customer will drive off in the new car--all on the same day. Do we still have to mail the counteroffer letter? Reg B says the adverse action notice has to be in writing, as described below, but we're concerned about creating confusion for the customer. Thank you.
Regulation B1002.9 (2) Content of notification when adverse action is taken. A notification given to an applicant when adverse action is taken shall be in writing and shall contain a statement of the action taken; the name and address of the creditor; a statement of the provisions of section 701(a) of the Act; the name and address of the Federal agency that administers compliance with respect to the creditor; and either: (i) A statement of specific reasons for the action taken; or (ii) A disclosure of the applicant's right to a statement of specific reasons within 30 days, if the statement is requested within 60 days of the creditor's notification. The disclosure shall include the name, address, and telephone number of the person or office from which the statement of reasons can be obtained. If the creditor chooses to provide the reasons orally, the creditor shall also disclose the applicant's right to have them confirmed in writing within 30 days of receiving the applicant's written request for confirmation.
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#2179811 - 05/25/18 02:33 PM
Re: Counteroffer accepted immediately--sending notice
Karen B.
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10K Club
Joined: Jul 2001
Posts: 83,228
Galveston, TX
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There is no requirement that a counter-offer be made in writing. If they took the counteroffer, there is no adverse action.
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#2179812 - 05/25/18 02:36 PM
Re: Counteroffer accepted immediately--sending notice
Karen B.
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100 Club
Joined: Oct 2014
Posts: 151
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#2218059 - 07/19/19 05:05 PM
Re: Counteroffer accepted immediately--sending notice
Karen B.
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Gold Star
Joined: Mar 2011
Posts: 258
TN
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If the counter offer is not accepted, is an AAN or counteroffer that includes AAN on the initial request is required?
Is an open end home equity line of credit request that cannot be originated due to too high LTV where the bank is able to offer a lower loan amount considered a counteroffer?
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#2218069 - 07/19/19 05:48 PM
Re: Counteroffer accepted immediately--sending notice
Karen B.
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10K Club
Joined: Nov 2000
Posts: 18,762
Central City, NE
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Is an open end home equity line of credit request that cannot be originated due to too high LTV where the bank is able to offer a lower loan amount considered a counteroffer? Yes. Send them a combined counteroffer and AAN saying why you can't make the original request (LTV is too high) and offer a lower low amount. Give them a deadline to respond by. If you don't hear from them by that time, you're done. No need to send a second notice.
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#2224358 - 10/24/19 07:07 PM
Re: Counteroffer accepted immediately--sending notice
Karen B.
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100 Club
Joined: Aug 2015
Posts: 156
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Is it possible to send a counteroffer that is subject to conditions? So based on stated information we cannot grant XX loan amount but can offer XX, but the loan amount still requires validation of income.
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#2224739 - 10/29/19 11:44 PM
Re: Counteroffer accepted immediately--sending notice
David Dickinson
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New Poster
Joined: Aug 2011
Posts: 3
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Is an adverse action notice with a counter-offer required to have a date the counter-offer must be accepted by?
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#2224748 - 10/30/19 12:06 PM
Re: Counteroffer accepted immediately--sending notice
Karen B.
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10K Club
Joined: Jul 2001
Posts: 83,228
Galveston, TX
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No, not by regulation, but why would you not want to close that window at some point?
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com
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#2224751 - 10/30/19 12:26 PM
Re: Counteroffer accepted immediately--sending notice
Karen B.
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Power Poster
Joined: Jun 2003
Posts: 7,650
Florida
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Vicki, welcome to BOL. Like Mr.Carey mentioned, there is no federal reg. However, you have HMDA to consider (how ling are you going to keep it pending before a final action, and also expiration of the credit documents. Many banks impose a 15 day limit or "no further consideration will be given to your application."
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