Oral notices qualify under some business, telephonic and small volume lender scenarios. Otherwise, a written notice is required under .9(a)(2) to communicate an adverse action.
But your question relates to not providing early disclosures under "Z" and RESPA. We have generalized this rule to say that if you deny it in the 3 days period, no notice disclosure ("Z"/RESPA) is needed. Don't read the technical "B" definition/requirement into this. I think there is sufficient room for interpretation that you are OK.
Look at the commentary and you'll see that it doesn't refer to a formal adverse action notice.
4. Exceptions. The creditor may determine within the 3-day period that the application will not or cannot be approved on the terms requested, as, for example, when a consumer applies for a type or amount of credit that the creditor does not offer, or the consumer’s application cannot be approved for some other reason. In that case, the creditor need not make the disclosures under this section. If the creditor fails to provide early disclosures and the transaction is later consummated on the original terms, the creditor will be in violation of this provision. If, however, the consumer amends the application because of the creditor’s unwillingness to approve it on its original terms, no violation occurs for not providing disclosures based on the original terms. But a new application subject to this section.
Last edited by Andy Z; 09/06/02 03:49 PM.
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AndyZ CRCM
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