Financing · Regulation B, 12 CFR 1002.9Mortgage approval or denial: the 30-day notice rule
The Equal Credit Opportunity Act sets the lender's outer deadline. A creditor must notify the applicant of the action taken within 30 days after receiving a completed application – approval, counteroffer or adverse action (12 CFR 1002.9(a)(1)(i)). A denial must be in writing with the specific principal reasons, or with the right to get them within 30 days if requested within 60 days; "internal standards" or "did not achieve a qualifying score" are not specific enough (§1002.9(a)(2), (b)(2)). If the application is incomplete, within 30 days the lender either decides or sends a written notice listing what is missing and a reasonable deadline to provide it (§1002.9(c)). Thirty days is often longer than a contract's financing period, so the purchase contract's deadline – not the lender's – is the one that protects the buyer's earnest money.
What the lender must do (12 CFR 1002.9)
30 days – complete
Notice of approval, counteroffer or adverse action after a completed application (§1002.9(a)(1)(i)).
30 days – incomplete
Decide, or send a written notice of what is missing with a reasonable time to provide it (§1002.9(c)).
90 days – counteroffer
If the applicant does not accept or use the counteroffer, notice of action within 90 days (§1002.9(a)(1)(iv)).
Specific reasons
A denial states the principal reasons, or the right to them within 30 days if asked within 60 days (§1002.9(a)(2), (b)(2)).
What the TC tracks
- The contract's financing deadline – usually shorter than the lender's 30 days.
- A written loan approval or commitment before that deadline, not a verbal "looks good".
- Any notice of incompleteness and its deadline – a missed document can end the application.
- If an extension is needed, a signed amendment before the financing deadline.
What to tell the buyer
- Send every document the lender asks for the same day.
- Do not open new credit or make large purchases before closing.
- If denied, ask in writing for the specific reasons – the lender must give them.
Questions buyers and agents ask
How long does a lender have to approve or deny a mortgage?
It must notify the applicant of its decision within 30 days after receiving a completed application (12 CFR 1002.9(a)(1)(i)).
Does the lender have to say why a mortgage was denied?
Yes. A denial notice must give the specific principal reasons or the right to get them within 30 days if requested within 60 days (12 CFR 1002.9(a)(2)).
What happens if my application is incomplete?
Within 30 days the lender decides or sends a written notice listing what is needed and a reasonable deadline; if nothing arrives in time, it need not consider the application further (12 CFR 1002.9(c)).
Related guides
ClosingCode puts the contract's financing deadline next to the lender's steps on the deal and reminds you before it passes – the date that decides the earnest money.
Start free trialSource: 12 CFR 1002.9 (Regulation B, Equal Credit Opportunity Act), eCFR, read October 25, 2026.
General information, not legal or financial advice. ClosingCode is software; it is not a law firm, lender or brokerage. This guide is not a substitute for the advice or services of an attorney.