A lender must provide an adverse action notice within how many days of taking adverse action on a mortgage application?
Correct Answer
B) 30 days
Under Regulation B, creditors must notify applicants of adverse action within 30 days after receiving a complete application or within 30 days after taking adverse action on an incomplete application.
Why This Is the Correct Answer
Under Regulation B, creditors must notify applicants of adverse action within 30 days after receiving a complete application or within 30 days after taking adverse action on an incomplete application.
More Federal Laws Questions
A mortgage broker's website states 'Qualified borrowers can get loans with down payments as low as 3%.' Which statement about TILA advertising requirements is correct?
A loan's APR increases from 4.25% on the Loan Estimate to 4.35% on the Closing Disclosure due to a rate lock expiration. What action is required?
A lender originates a mortgage that meets all QM requirements. Three years later, the borrower defaults and claims the lender violated the ATR rule. What legal protection does the lender have?
For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?
Which of the following documents must be provided to trigger the start of the 3-day rescission period?
People Also Study
General Mortgage Knowledge
23% of exam
Mortgage Loan Origination Activities
25% of exam
Ethics, Fraud & Consumer Protection
17% of exam
Uniform State Test Content
12% of exam
Previous Question
An MLO working for a bank that originated 200 covered loans last year notices unusual patterns in denial rates by race in their portfolio. What is the MLO's primary obligation regarding this observation?
Next Question
A borrower refinances their home on Monday and receives proper TILA disclosures. On Wednesday, they decide to rescind but realize they need the loan proceeds to pay off credit cards due Thursday. What happens if they rescind?