A lender has how many days to notify the borrower of an underwriting decision?

The correct duration for a lender to notify a borrower of an underwriting decision is 30 days. This timeframe is established under the Equal Credit Opportunity Act (ECOA), which mandates that lenders inform applicants about the results of their credit applications in a timely manner. This regulation ensures that borrowers receive a prompt response regarding their loan status, enabling them to plan accordingly. By complying with the 30-day requirement, lenders uphold fair lending practices and maintain transparency in the lending process.

Other options do not align with regulatory standards set forth in governing legislation regarding borrower notifications. Adhering to this 30-day guideline helps protect the rights of borrowers and ensures they are informed about the terms of the credit they seek.