ECOA

Question 1

How long does a lender have after receiving an application to furnish the applicant with a notice of action? If it’s a notice of adverse action, what must be included?

Answer 1

30 days after receiving an application

• Action taken.
• Name and address of the creditor.
• A statement of the provisions of section 701(a) of the Equal Credit Opportunity Act.
• Name and address of the Federal agency that administers compliance with respect to the creditor.
• A statement of specific reasons for the action taken or a disclosure of the applicant’s right to a statement of specific reasons within 30 days, if the statement is requested within 60 days of the creditor’s notification. The disclosure shall include the name, address, and telephone number of the person or office from which the statement of reasons can be obtained.

If there are multiple applicants, the notice is only sent to the primary applicant, if that can be determined.

Question 2

Under ECOA, how long must the lender retain an application after the date of either loan acceptance or denial?

Answer 2

25 months