Answer:
by Randy Carey:
If you are pending documents or information from the customer, it sounds like an incomplete application to me. Without additional specific information it is difficult to determine.
Answer:
by David Dickinson:
I'll make the assumption that you have a complete application, granted a conditional approval and are now trying to verify the information. The short answer is "yes, notification is required".
If the applicant won't respond to your requests for verification documents, then you either deny the application or send a Notice of Incompleteness.
When an application is incomplete regarding information that the applicant can provide and the creditor lacks sufficient data for a credit decision, the creditor may deny the application giving as the reason for denial that the application is incomplete. The creditor has the option, alternatively, of providing a notice of incompleteness under §1002.9(c). [Commentary to §1002.9(a)(1)#3]
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 notify the applicant in accordance with paragraph (a) of this section. [§1002.9(c)(2)]
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