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#1265984 - 10/14/09 01:15 AM Residential applications
Tryin-2-Comply Offline
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Hills of TN
Our bank typically collects a written face to face application for loans secured by a consumer's primary residence. However, our bank is growing and some of our newer lenders (who lived another banking life) are having more and more telephone applications, email applications, fax applications, etc.

How do other banks handle the signature of the at application documents - do you just document "taken by phone" and leave alone.

Do you request the applicant, if approved, to sign the application documents at loan closing?

It amazes me that so many of these disclosures do not require a signature - but yet - how do we prove we actually got the infromation from them?????

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#1265997 - 10/14/09 02:29 AM Re: Residential applications Tryin-2-Comply
jlroberts Offline
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jlroberts
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Ohio
At our place if the application is marked anything than face-to-face, we just leave it alone. We consider this the initial application. Then at the time of closing we prepare a final application on every loan (face-to-face or not)to be signed at closing.

The new GFE, effective 1/1/10, does not even have a signature line for the borrower to sign. And you can not alter the form. If you want signatures, you have to come up with some type of GFE Addendum for them to sign.

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#1266004 - 10/14/09 03:33 AM Re: Residential applications Tryin-2-Comply
Kathleen O. Blanchard Offline

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Kathleen O. Blanchard
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May I add that your bank should take control of the situation and develop strict policies and procedures for the application methods the bank wishes to offer. If lenders feel another application method is desirable, that is certainly worth considering, but it should be a violation of policy for them to go outside of established processes on their own. That is a recipe for regulatory violations.

Training for new lenders should state what are the acceptable methods of application under the bank's policies.
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#1266099 - 10/14/09 01:43 PM Re: Residential applications Kathleen O. Blanchard
Tryin-2-Comply Offline
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Hills of TN
So my next question - to jlroberts - if you create a final application for closing regardless of how the application was taken - what date do you place on that application? the true application date? or the loan closing date? if you have them sign the application at closing with the application date - is that technically correct? how do you mark the "final" application - the true method the application was taken?

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#1266132 - 10/14/09 02:16 PM Re: Residential applications Tryin-2-Comply
Truffle Royale Offline

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Not jlroberts but we too prepare a FINAL application that is signed and dated at the closing table. It acts as a confirmation of the information that was used to qualify the loan.

Keeping that last sentence in mind, the FINAL application should be marked the way the original was taken. The only variances might be actual bank account balances vs the guesstimates on the original, etc.

For HMDA purposes, we keep Section X the way it appears on the original. We do NOT change it to reflect the fact that the borrower is now in front of you. I'm one of those who believes that doing that would be a violation of the intent of Reg C which is to gather information AT THE TIME OF APPLICATION, not at the closing table. There are other notable BOLers who disagree with this aspect.

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#1266133 - 10/14/09 02:20 PM Re: Residential applications Truffle Royale
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Hills of TN
so you keep both applications - the "guestimate" and the "final" ??

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#1266388 - 10/14/09 05:32 PM Re: Residential applications Tryin-2-Comply
tcredle Offline
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If our offices take by phone then it is noted by phone and dated that day and sent to the document department who sends a letter along with all the application disclosures to be signed and returned.

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#1266819 - 10/14/09 11:09 PM Re: Residential applications tcredle
Tryin-2-Comply Offline
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Joined: Apr 2003
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Hills of TN
thanks to all who responded.

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#1266840 - 10/15/09 12:20 AM Re: Residential applications Tryin-2-Comply
Truffle Royale Offline

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Every file has an original application and a final application the same way there's an ETIL and a final TIL in every file. We sell our loans to investors and that's SOP for all our files.

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