According to the Equal Credit Opportunity Act, how many business days must a lender notify the borrower of an underwriting decision?

The Equal Credit Opportunity Act (ECOA) requires lenders to notify borrowers of their underwriting decisions within a specified time frame. This period is set to ensure transparency and to provide borrowers with timely information regarding their loan applications. According to the ECOA, the correct timeline is 30 business days following the lender's receipt of a completed application. This rule is designed to protect consumers and promote fairness in lending by ensuring they aren't left in uncertainty about their loan status for an extended period. The requirement also helps borrowers to make informed decisions about their financing options.

Understanding this timeline is crucial for both consumers and lenders, as it establishes a clear expectation for communication throughout the lending process and fosters accountability in the evaluation of loan applications.