Academic journal article ABA Banking Journal

Reg B's Varying Impact in Business and Consumer Loans

Academic journal article ABA Banking Journal

Reg B's Varying Impact in Business and Consumer Loans

Article excerpt

Q. Regulation B requires creditors to notify applicants of actions taken on a loan application within 30 days of application. When dealing with a consumer loan request, I can't think of any reason why it would take longer than 30 days. However, when dealing with a commercial loan request, it's a different case. For example, a loan officer receives a financial statement from a company seeking a $1 million loan for its import-export business. The loan officer and business can go back and forth seeking and sending information so that several weeks go by before the package is ready to go to the loan committee for approval. Action is further delayed because the committee only meets every few weeks. Would you consider it a violation of Reg B if we don't send a Notice of Action Taken for Incompleteness within 30 days?--M.F., Fla.

A. Probably not, though you may have to notify the applicant orally within 30 days, depending on its gross revenues. While the regulation generally requires creditors to notify applicants in writing of action taken within 30 days of receiving an application, the rule is different for business loan applications. The rule varies depending on the gross revenues of the business applicant. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.