Pre-approval/Notice of Incompleteness/Denial (CD)

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Question:

Are mortgage lenders required to issue a credit decision (conditional approval or Pre-approval or notice of incompleteness or denial) on purchases and a commitment letter on refi's within 30 days of application? We have a purchase of new construction file that sat for 4 months while construction finished with no credit decision.

Answer:

There is no distinction in Reg B between purchases and refinances, but there is a requirement that action be taken on applications within 30 days after receipt of application. That requirement applies to all applications.