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#13642 - 03/19/02 10:34 PM HMDA "Date Action Taken"
Bville Offline
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Bville
Joined: May 2001
Posts: 1,282
Out West
We had a home mortgage loan that was approved contingent upon the appraisal. The lender notified the applicant of this by letter two times. In the first letter the applicant was asked to return the signed disclosures. In the second letter the applicant was given a date by which he should notify the bank if he wanted to proceed with the loan since the bank had not heard from him. For Reg. B I believe the application can be considered withdrawn. Since the applicant didn't expressly withdraw the application, for HMDA I think it has to be considered Approved, but not Accepted. Can our action taken date be the deadline given in the notice or does it have to be the date the bank decided to approve the loan? Every time I think I have this HMDA stuff figured out, some one asks another question.

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General Discussion
#13643 - 03/20/02 04:53 PM Re: HMDA "Date Action Taken"
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
I think that your Action Date is the day you approved the loan - it is NOT the deadline date. This is a Code 2 - Application Approved but not accepted by applicant.
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#13644 - 03/20/02 07:17 PM Re: HMDA "Date Action Taken"
JSD Offline
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JSD
Joined: Oct 2000
Posts: 512
USA
If an appraisal wasn't done and the applicant did not respond why could it not be reported as incomplete? Since the approval depended on the outcome of the appraisal it would appear to me that it should be reported as incomplete.

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#13645 - 03/20/02 07:46 PM Re: HMDA "Date Action Taken"
Anonymous
Unregistered

My vote goes to you - I would report it as "incomplete" since the approval decision would be based on satisfactory appraisal and the customer is not pursuing that route.

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#13646 - 03/20/02 07:56 PM Re: HMDA "Date Action Taken"
Rubaiyat Offline
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Joined: Jun 2001
Posts: 1,373
Lido Deck
My vote is with David on this. If there is anything in the file with the word "approved" on it, including "approved pending . . ." we consider it approved but not accepted and use the approval date as the action taken date.
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#13647 - 03/20/02 08:05 PM Re: HMDA "Date Action Taken"
Bville Offline
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Bville
Joined: May 2001
Posts: 1,282
Out West
I agree common sense would make it incomplete, BUT the way I read HMDA, it says I can only use Incomplete as the Action Taken if I sent the notice of incompleteness as described under Reg. B asking the customer to supply additional information by a specific date. All we've really asked the customer is whether he wants to continue with the loan process.

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#13648 - 03/21/02 03:59 AM Re: HMDA "Date Action Taken"
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
All loans are approved contingent upon ... (appraisal, verification of income, title clear, etc.) This is not an imcomplete ("I need X info, by X date or else we will consider your file closed"). It is an approval that was not accepted by the applicant.
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http://www.bankerscompliance.com

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#13649 - 08/01/02 02:03 PM Re: HMDA "Date Action Taken"
Liz F Offline
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Liz F
Joined: Jun 2001
Posts: 23
A further question on this point:

"I agree common sense would make it incomplete, BUT the way I read HMDA, it says I can only use Incomplete as the Action Taken if I sent the notice of incompleteness as described under Reg. B asking the customer to supply additional information by a specific date. All we've really asked the customer is whether he wants to continue with the loan process."

If you have a file that does not indicate approval anywhere, (i.e. it is clearly an incomplete file) BUT no Reg B notice of incompleteness was sent [ECOA problem], can you still report it on the HMDA-LAR as incomplete? If not, what do you report it as?

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#13650 - 08/02/02 05:13 AM Re: HMDA "Date Action Taken"
Bville Offline
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Bville
Joined: May 2001
Posts: 1,282
Out West
If it is truly an incomplete application and no notice of incompleteness was sent, a denial should have been sent with "application incomplete" as the reason - in which case it is a denial for HMDA, too. If the file is incomplete because the lender didn't move forward and collect all the information needed to make a decision (the applicant had supplied everything required) they probably missed the 30 day deadline to make a decision. My guess is they should finish their work, either deny or approve the application and follow through with HMDA from there. It could end up as withdrawn for Reg B and Approved but not accepted for HMDA, denied or originated for both.

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