A creditor receives a completed consumer mortgage application on 1 September and has all information it normally needs for a credit decision. By 3 October it has sent no approval, counteroffer, or adverse-action notice. The application was not withdrawn. What is the Regulation B result?
Correct Answer
A) Noncompliant: notice of action was due within 30 days of the completed application
A. The creditor missed the completed-application notification deadline. The application was complete on September 1, so the stated 30-day period ends October 1. By October 3 no action notice has been sent, and the stem excludes withdrawal. Silence does not satisfy the notification obligation. Scope and exceptions: This is a completed consumer application. Incomplete applications and other types of action have separate notification provisions. The missed deadline does not itself approve or deny the loan. Source: 1002.9(a)(1)(i) — https://www.consumerfinance.gov/rules-policy/regulations/1002/9/
Why This Is the Correct Answer
A. The creditor missed the completed-application notification deadline. The application was complete on September 1, so the stated 30-day period ends October 1. By October 3 no action notice has been sent, and the stem excludes withdrawal. Silence does not satisfy the notification obligation. Scope and exceptions: This is a completed consumer application. Incomplete applications and other types of action have separate notification provisions. The missed deadline does not itself approve or deny the loan.
Why the Other Options Are Wrong
Option B: Compliant: silence counts as an approval
Silence is not an approval notice.
Option C: Compliant: every mortgage application automatically gets a 60-day decision period
There is no automatic 60-day mortgage extension under this provision.
Option D: Noncompliant only if the borrower specifically asks for a decision
The applicant need not separately request the required notice.
Exam Tip
Completion starts the notification clock; an unanswered file is not an outcome.
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