From the current GIR (this instruction supercedes old 1996 guidance):
2. Prequalification. A prequalification
request is a request by a prospective
loan applicant (other than a request
for preapproval) for a preliminary
determination on whether the prospective
applicant would likely qualify
for credit under an institution’s standards,
or for a determination on the
amount of credit for which the prospective
applicant would likely qualify.
Some institutions evaluate prequalification
requests through a procedure
that is separate from the institution’s
normal loan application process; others
use the same process. In either
case, Regulation C does not require
an institution to report prequalification
requests on the HMDA/LAR, even
though these requests may constitute
applications under Regulation B for
purposes of adverse action notices.