Skip to content
BOL Conferences
Thread Options
#1661797 - 02/07/12 10:16 PM Adverse Action/counteroffer scenarios
Bec Offline
Diamond Poster
Bec
Joined: Jul 2010
Posts: 1,115
The Great White North
1.)Application was denied for secondary market. Customer went to a different bank and was also denied. Customer would like to pursue an in house product with us now. For this scenario would an adverse action be sent to the customer and then a new application could be started for the new product? Can we use the documentation that we already had on file as it is less than a couple of weeks old?

2.) Application was denied for secondary market and the customer has decided to go in house. This is a seamless transition. Would you send and adverse action for the denial with the counteroffer or is documentation in file sufficient? Would you have to redisclose GFE due to the product change?
_________________________
Go Packers

Return to Top
Lending Compliance
#1661871 - 02/08/12 01:48 PM Re: Adverse Action/counteroffer scenarios Bec
AFaquir Offline
Platinum Poster
AFaquir
Joined: Jan 2011
Posts: 763
Top of the world... and never ...
For operations sake... provided you didn't send a denial once they were turned down for initial secondary market prodcut... you would be easier served to go with a counter-offer, which counts as a denial... unless they accept the counter-offer. I believe you are able to redisclose the GFE because of the product change, but only the elements of the GFE which change as a direct result of the product change.

However, if you already provided an AAN (a clear denial), you would have to, in my opinion, get a new application and start over. You can choose to use the same information but be careful of using the same credit score for FCRA issue and the same flood cert where rules my apply.

Hope that opinion helps.

Cheers!
_________________________
In life, there is a lot less that could get better and a lot more that could get worse.

MBA Fin/MBS HR

My views only!

Return to Top
#1661873 - 02/08/12 01:50 PM Re: Adverse Action/counteroffer scenarios Bec
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,482
Bloomington, IN
1. You owe the guy an AAN for the 2ndary market denial. How you handle the re-application for the in-house loan would be up to your internal loan policy/procedure.

2. You owe the guy an AAN for the 2ndary market denial. Unless you gave the applicant a firm offer of credit for the in-house product before he decided to apply for that product then there was no counteroffer made. If the applicant requested the change in product it would be a changed circumstance. If the bank changed the product it would not be.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#1662075 - 02/08/12 05:29 PM Re: Adverse Action/counteroffer scenarios Bec
Bec Offline
Diamond Poster
Bec
Joined: Jul 2010
Posts: 1,115
The Great White North
Understood...thank you both for your replies.
_________________________
Go Packers

Return to Top

Moderator:  Andy_Z