Under ECOA, how soon must borrowers be notified of the underwriting decision in writing?

Under the Equal Credit Opportunity Act (ECOA), lenders are required to notify borrowers of the underwriting decision within 30 days of receiving a completed application. This regulation is designed to ensure that borrowers are kept informed about the status of their loan applications in a timely manner. Providing notification within this timeframe empowers borrowers by giving them clear visibility into the lending process, helping them make informed decisions regarding their financial options.

The law also emphasizes the need for transparency and fairness in the lending process, and the 30-day notification rule supports these principles by ensuring that all applicants, regardless of their financial background, are treated fairly and receive prompt communication about their creditworthiness and eligibility.