Definition of Completed Application

AB

Sure, I'd be happy to explain in detail the definition of a "completed application" as defined under 12 CFR 202.2(f).

The term "completed application" is defined under Regulation B, which is the implementing regulation for the Equal Credit Opportunity Act (ECOA). The ECOA prohibits creditors from discriminating against applicants on the basis of certain characteristics, such as race, gender, and age. The term "completed application" is important because it triggers certain obligations under the ECOA and Regulation B.

According to 12 CFR 202.2(f), a completed application is an application for which the bank has received all the information it regularly considers in evaluation, including credit reports, verifications, and so forth. This means that the applicant has provided all of the information that the bank typically uses to evaluate creditworthiness, such as income, employment history, and credit history.

Option A is therefore the correct answer.

It's worth noting that the definition of a completed application is important because it triggers certain requirements under the ECOA and Regulation B. For example, once a completed application has been received, the creditor must provide the applicant with a notice of action within a certain period of time. Additionally, the creditor must provide the applicant with a copy of any appraisal report that was used in connection with the application.

It's also worth noting that the definition of a completed application is distinct from other concepts that are used in connection with the credit application process. For example, an inquiry becomes an application when the creditor evaluates information and decides to grant or decline the credit (Option C). This means that if a consumer submits an inquiry about a credit product, but the creditor has not yet evaluated the consumer's information, it is not yet an application under the ECOA. Similarly, requests for written preapprovals to be issued by the lender are not considered completed applications, although they may trigger other requirements under the ECOA and Regulation B (Option D).

Overall, the definition of a completed application is important because it triggers certain requirements under the ECOA and Regulation B, and helps ensure that creditors are evaluating applicants fairly and without discrimination.