When is it acceptable to provide a notice after an application is rejected?

Providing a notice after an application is rejected is acceptable "as soon as reasonably practicable" because it aligns with the requirement to communicate rejection to applicants in a timely manner. This ensures that applicants are informed of the outcome without unnecessary delay, allowing them to understand their status and consider alternative options.

The phrase "as soon as reasonably practicable" acknowledges that while immediate notification is preferable, there may be circumstances that could slightly delay the communication, such as the time it takes to finalize the decision or prepare the necessary documentation. This standard emphasizes the importance of promptness while allowing for practical considerations.

Other options imply strict timelines or conditions that do not align with best practices in mortgage lending. For example, specifying "immediately after the decision is made" may not always be feasible, and limiting the notification timeframe to within a week could be seen as insufficient in maintaining transparency and supporting applicants' needs. Allowing notification only upon request could hinder the applicant's ability to understand their application status and is not in line with professional standards for communication in lending practices.