#1644185 - 12/29/1104:27 PMTwo LAR entries or one?
Joined: Feb 2003
We take an application on 9/1 for $100,000 to refinance an existing mortgage loan. On 10/15 the customer changes his request amount to $110,000. Bank approves the increased request and the loan is closed on 11/1. How is this recorded on the LAR?
I don't believe how we currently have it recorded is correct. We have the orginal application listed as date taken as 9/1 and "withdrawn" on 10/15. Then we have another LAR entry for the loan at the new amount with a date received of 10/15 and action taken as 11/1.
If the bank received a new application, then the LAR should handle these as separate requests (and they should have been processed as separate requests). The first request, if approved, would be approved not accepted. If an approval had been made, the bank cannot report as withdrawn even though the customer changed his mind. It is approved not accepted.