Skip to content
BOL Conferences
Thread Options
#1781695 - 01/31/13 05:11 PM HMDA Loan Request NO LOAN AMT or INCOME Stated
MSMITH10 Offline
100 Club
Joined: Sep 2010
Posts: 160
Our mortgage dept took an application from a customer that did not complete the loan amount for the refinance or their income. The loan was denied because succession documents were not completed on the property. How do I complete the LAR without a loan amount or income?

We also have some pre-quals that turn into hmda reportable requests because the customer will list a property address. These do not always state a loan amount. How should these be reported?

Return to Top
HMDA

   
HMDA Academy
#1781700 - 01/31/13 05:16 PM Re: HMDA Loan Request NO LOAN AMT or INCOME Stated MSMITH10
MSMITH10 Offline
100 Club
Joined: Sep 2010
Posts: 160
Could I argue that this is not a completed loan app since we do not have a loan amount or income?

Return to Top
#1781716 - 01/31/13 05:43 PM Re: HMDA Loan Request NO LOAN AMT or INCOME Stated MSMITH10
Truffle Royale Offline

10K Club
Joined: Jul 2003
Posts: 17,395
For RESPA compliance you could argue no loan amount = no application.
I would think you could therefore say you didn't have an application for Reg C (HMDA) either but I'm not 100% sure.

Hopefully someone else will be able to cite the Reg to clarify this for us both.

Return to Top
#1781720 - 01/31/13 05:52 PM Re: HMDA Loan Request NO LOAN AMT or INCOME Stated MSMITH10
raitchjay Online
Power Poster
Joined: Oct 2009
Posts: 9,088
OK
Your first scenario is different from the last one. In the refi scenario, you denied the loan so you can't make the argument that it wasn't an application....you denied it. In your 2nd scenario, i agree with TR IF you aren't taking any action on them prior to sending out an incomplete notice or denying them for being incomplete. If you are denying them based on anything else, then you're treating them as an application and they'd need to be reported IMHO.
_________________________
I'm fixin' to fix that.

Return to Top
#1781725 - 01/31/13 05:55 PM Re: HMDA Loan Request NO LOAN AMT or INCOME Stated MSMITH10
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
You have an incomplete application, you report on the LAR as a denial for an incomplete application or if you sent the notice of incompleteness as a closed for incompleteness.

For a refinancing an assumed minimum loan amount will be the amount owed on the loan to be refinanced. Since there was no income used you would report NA.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#1781812 - 01/31/13 07:53 PM Re: HMDA Loan Request NO LOAN AMT or INCOME Stated MSMITH10
MSMITH10 Offline
100 Club
Joined: Sep 2010
Posts: 160
Dan
I do not have a LAR option that states denial for incomplete application. I have one that says closed for incompleteness and a separate one that say denied.

Could we consider this an application under Reg B since we denied the request, but not a complete application under Reg C since there is no stated loan amount or income?

Return to Top
#1781836 - 01/31/13 08:26 PM Re: HMDA Loan Request NO LOAN AMT or INCOME Stated MSMITH10
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
There is no such thing as a pre-qual for a refinancing and there are no minimum application attributes for HMDA as there are for RESPA.

You have an identified property therefore you have an application for HMDA purposes. It may be an incomplete application but you have to report the action taken on incomplete applications.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top

Moderator:  SMQ, CRCM