Questions: If a creditor receives a completed application and determines, within three business days, that it will deny the application for the creditor must issue: A. A Loan Estimate and a notice of adverse action B. A Loan Estimate only C. A notice of adverse action only D. No disclosures

The answer is C. A notice of adverse action only

This option is incorrect because if the creditor decides to deny the application within three business days, they are not required to provide a Loan Estimate. The Loan Estimate is typically provided when the creditor is considering approving the application.

This option is incorrect because if the creditor decides to deny the application, they must provide a notice of adverse action, not just a Loan Estimate.

This option is correct. According to the Equal Credit Opportunity Act (ECOA), if a creditor decides to deny a credit application, they must provide a notice of adverse action to the applicant. This notice informs the applicant of the decision and the reasons for the denial.

This option is incorrect because the creditor is required to provide a notice of adverse action when denying a credit application.