Applicant came to us for preapproval did not know the address of property.
OK, so what is the problem?
Applicant sent in contract 30 days later and it was dated 1 day prior to application.
If your applicant truly not inform you of the property you have no issue. That said, they had already bought the proprety. I suspect your loan officer is playing games. Remember, the diligence requirement for Reg. B requires you to ask the questions needed to complete the application. This does not sound like a preapproval if they already have the property.
Should we have sent disclosures out with unknown in the address section and assumed RESPA applied even though the applicant did not know the address?
No. I think what you did was right if your loan officer really did not know the property address. I suspect your loan officer did know the address though. I think this may be a training issue and, if it were my loan officer, I would explain to him where Reg. B and RESPA come into play. If the applicant truly mislead him (suggesting that it was a preapproval and no property was identified) then the loan officer did the right thing. If not, the loan officer should go back to compliance 101.