Answer:
When an applicant submits an application, 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and the applicant has not inquired within 30 days after applying, the creditor may treat the application as withdrawn and is not required to send an adverse action notice.
Within 30 days after receiving application that is incomplete regarding matters that an applicant can complete, the creditor shall notify the applicant either of the action taken or of the incompleteness. If additional information is needed from an applicant, the creditor shall send a written notice to the applicant specifying the information needed, designating a reasonable period of time for the applicant to provide the information, and informing the applicant that failure to provide the information requested will result in no further consideration being given to the application. The creditor shall have no further obligation under this section if the applicant fails to respond within the designated time period. If the applicant supplies the requested information within the designated time period, the creditor shall take action on the application and send an adverse action notice if the loan is denied.
First published on BankersOnline.com 3/19/01
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