In a consumer lending (non HMDA-reportable transactions) setting, if an applicant submits an application to be prequalified for a loan of, say, $5,000, and they're prequalified (or conditionally prequalified) for, say, $4,000, notified of that prequalification, and the creditor never hears back from them, are they owed an adverse action letter under Reg. B?
Context: for a denied prequalification request, we'd typically send an AAN. I'm trying to determine when 1002.9(e) comes into play:
"(e) Withdrawal of approved application. When an applicant submits an application and the parties contemplate that the applicant will inquire about its status, if the creditor approves the application and the applicant has not inquired within 30 days after applying, the creditor may treat the application as withdrawn and need not comply with paragraph (a)(1) of this section."
The counteroffer aspect of this scenario makes this look like "adverse action" as defined by 1002.2(c)(1)(i), but the approved/prequalified aspect makes it look like it could be considered withdrawn. There just doesn't seem to be a lot of commentary around 1002.9(e), whether in the Official Interpretations or in the consultant/law firm/compliance guide marginalia. Any thoughts much appreciated!