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#1652380 - 01/18/12 08:31 PM Reg B Adverse Action / FCRA
MSMITH10 Offline
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Joined: Sep 2010
Posts: 160
Our mortgage dept has a pre-qualification form they use when a customer would like to see if they pre-qualify to purchase a home. We do not get property addresses on these so they are not considered "true" applications. If a customer withdraws his request for pre-qualification before an "approve or decline" is communicated would we still need to send an adverse action letter?

Do we send adverse action if we decline a pre-qual? We are pulling credit most of the time.

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#1652385 - 01/18/12 08:35 PM Re: Reg B Adverse Action / FCRA MSMITH10
swiggles Offline
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Joined: Aug 2001
Posts: 7,333
No adverse action needed for a withdrawn application, as nothing adverse has occurred.
The more you sweat in training, the less you bleed in battle.......

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#1652388 - 01/18/12 08:22 PM Re: Reg B Adverse Action / FCRA MSMITH10
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,025
Bloomington, IN
When an applicant withdraws their request before a decision is made there has been no adverse action taken therefore an AAN is not required.

If you deny a pre-qual it becomes an application for the purposes of Reg B's 202.9 notification requirements. Review the discussion of what is an application in the Commentary to 202.2.
The opinions expressed are mine and they are not to be taken as legal advice.

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