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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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swiggles
Joined: Aug 2001
Posts: 7,333
No adverse action needed for a withdrawn application, as nothing adverse has occurred.
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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.
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The opinions expressed are mine and they are not to be taken as legal advice.

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