Skip to content
BOL Conferences
Thread Options
#1684890 - 04/02/12 07:21 PM Pre-Approval
JW QC Audit Offline
Member
Joined: Aug 2008
Posts: 50
Good afternoon,

After a Loan Pre-Approval or Approval subject to (x,y,z,a) can there be a denial other than collateral?

Return to Top
Lending Compliance
#1684904 - 04/02/12 07:36 PM Re: Pre-Approval JW QC Audit
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
A pre-approval - most likely no but possible - it would be an extreme situation for the applicant's financial condition to change drastically enough to cause you to withdraw a pre-approval. A pre-approval should only be issued after full verified underwriting criteria has been reviewed.

Approval subject to - this would be a conditional approval and failure to meet any of the conditions could be reason for denial.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#1684950 - 04/02/12 08:34 PM Re: Pre-Approval JW QC Audit
JW QC Audit Offline
Member
Joined: Aug 2008
Posts: 50
The underwriter evaluated the loan, after that the underwriter approved " subject to", they send a Pre-Approval Letter with several conditions:

Example:
Updated paystubs
Personal Tax return
W-2

This is correct or incorrect? in the way that it handles

Return to Top
#1684962 - 04/02/12 08:54 PM Re: Pre-Approval JW QC Audit
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
That is a conditional approval or a pre-qualification. If you are subjecting the approval to verification of underwriting requirements then it would not be a pre-approval.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#1685033 - 04/03/12 11:46 AM Re: Pre-Approval JW QC Audit
JW QC Audit Offline
Member
Joined: Aug 2008
Posts: 50
Good Morning,

Thanks Dan.

Return to Top

Moderator:  Andy_Z