We had a borrower apply ONLINE for a $1.4 million loan. On her application, she entered her income as -$900. The loan was denied for insufficient income; however the loan officer never verified income, he just relied on what she put on her application. So, I have no idea what her gross income is. How do I report this on the HMDA LAR? Do we need to contact the applicant and find out her gross income?

Sounds to me someone was yanking your chain on the online application system.

You have to report gross income. Since gross income was not provided I would most likely report NA with good documentation in the file.

I have loan officers try to report negative income for a business for CRA....which requires the reporting of gross annual revenue. Typically, it's because they've actually turned in a profit figure (income less expenses).

Or better yet, they'll turn in a gross annual revenue of zero because the borrower is a non-profit organziation.

Thanks Dan! Yep, I thought the same thing regarding the legitimacy of it - haven't had a chance to talk to the LO regarding their thoughts! At least he sent out a denial notice, right?!!?