What must a lender notify applicants about regarding credit outcomes?

The requirement for lenders to notify applicants about credit outcomes includes informing them of all significant decisions made during the lending process, which encompasses loan approvals, counteroffers, and denials. This comprehensive communication is vital for maintaining transparency and ensuring that applicants understand their credit situation and any actions taken by the lender.

By notifying applicants about loan approvals, it reinforces positive credit histories and helps applicants recognize when they meet necessary lending criteria. Counteroffers are also crucial to communicate, as they represent the lender's willingness to modify terms based on the applicant's financial situation or potential risk factors. Lastly, informing applicants of denials is essential to ensure that they understand why their application was not approved, allowing them to address any issues or improve their creditworthiness for future applications. This holistic approach is aligned with fair lending practices and consumer protection regulations, which are key principles upheld by the Consumer Financial Protection Bureau (CFPB).