Under federal law, which action on a loan application does not require a written notice to the applicant?

When a loan application is approved, there is no legal requirement for the creditor to provide a written notice to the applicant. Approval of a loan typically leads to the next steps in the loan process, such as preparing a loan document for the borrower to sign.

In contrast, if an application is denied, a written notice is necessary to inform the applicant of the decision and the reasons behind it, allowing them to understand what aspects of their application may have contributed to the denial. Similarly, when a counter offer is made, the creditor must notify the applicant in writing, as this action alters the terms of the original application and requires the borrower's acknowledgment. Lastly, if the file is incomplete, providing written notice is essential so that the applicant has an opportunity to supply the missing information needed for the creditor to make a determination on the loan request.

Thus, the action of approving a loan application stands out as it does not necessitate written communication to the applicant under federal law.