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#1002778 - 07/23/08 04:59 PM AAN required
Many Hats Offline
Platinum Poster
Joined: May 2008
Posts: 915
Orlando, FL
Lender took an app on 6/9/08. We found out that the borrower did not have hazard coverage on the property. Borrower finally gets coverage on 7/21.

Don't we need to have an AAN in the file reflecting that the "Credit application is incomplete. The following information is needed: hazard insurance coverage. If not received by (let's say 30 days), we will be unable to give further consideration to your request."

The loan was closed on 7/22, but I am thinking we should have done an AAN after we found out there was no hazard insurance because we didn't "take action" within 30 days.

Am I on the right track?

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Lending Compliance
#1002917 - 07/23/08 06:23 PM Re: AAN required Many Hats
Tesla Offline
Power Poster
Joined: Nov 2003
Posts: 3,647
If your bank's procedures for considering an application complete include proof of hazard insurance and your lender has not made or communicated a credit decision to the borrower, you could have sent an incomplete application notice.

Here - hazard insurance would be a condition at closing, but not for credit approval. Our credit decision would have been based on proof of income and an accurate, complete application for our consumer loans.
It's not that I take life for granted. It's only that the good won't make it. Innocence dies, while Villany Thrives.

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