Timing of Adverse Action Notices

I need some help on the timing of Adverse Action notices. Is the notice required within 30 days of application or within 30 days of the decision? I read the regulation to say within 30 days of application but what if a decision has not been made within 30 days? Is the time the same for real estate secured and non-real estate secured loans?

Are the rules the same for a Pre-qualification?

Thanks for the help, I think I'm overthinking this!!

Unless you have an incomplete application, existing account or counter-offer, the rule says you owe the customer a notice of your action taken within 30 days after receiving a completed application.

Look at 1002.9:

(a) Notification of action taken, ECOA notice, and statement of specific reasons. (1) When notification is required. A creditor shall notify an applicant of action taken within:
(i) 30 days after receiving a completed application concerning the creditor's approval of, counteroffer to, or adverse action on the application;
(ii) 30 days after taking adverse action on an incomplete application, unless notice is provided in accordance with paragraph (c) of this section;
(iii) 30 days after taking adverse action on an existing account; or
(iv) 90 days after notifying the applicant of a counteroffer if the applicant does not expressly accept or use the credit offered.

Also, the commentary:
1. Timing of notice—when an application is complete. Once a creditor has obtained all the information it normally considers in making a credit decision, the application is complete and the creditor has 30 days in which to notify the applicant of the credit decision. (See also comment 2(f)-6.)

What is the time rule if an application was approved with a counteroffer, and the customer accepted the counteroffer? Still, the loan is waiting because of an outside situation, i.e., wait for the down payment, which is coming from another property for sale.

If the customer expressly accepted the counteroffer, then you have given the notice.

(iv) 90 days after notifying the applicant of a counteroffer if the applicant does not expressly accept or use the credit offered.

Also, many financial institutions just provide a joint denial/counter-offer so they don't have to worry about providing another denial if the applicant doesn't accept or use the counter offer.

6. Counteroffer combined with adverse action notice. A creditor that gives the applicant a combined counteroffer and adverse action notice that complies with §1002.9(a)(2) need not send a second adverse action notice if the applicant does not accept the counteroffer. A sample of a combined notice is contained in form C–4 of Appendix C to the regulation.

Thank you for the help. Are the rules the same for a pre-qualification? Do we collect GMI information on denied pre-qual?

3. When an inquiry or prequalification request becomes an application. A creditor is encouraged to provide consumers with information about loan terms. However, if in giving information to the consumer the creditor also evaluates information about the consumer, decides to decline the request, and communicates this to the consumer, the creditor has treated the inquiry or prequalification request as an application and must then comply with the notification requirements under §1002.9. Whether the inquiry or prequalification request becomes an application depends on how the creditor responds to the consumer, not on what the consumer says or asks. (See comment 9–5 for further discussion of prequalification requests; see comment 2(f)–5 for a discussion of preapproval requests.)

If a prequalification request is made on May 1st and we decline it on May 10th, is the notice required 30 days from the 10th or the 1st? Also wondering about GMI information. However, I don't feel like it is required since prequalifications are not HMDA reportable.