Skip to content
BOL Conferences
Thread Options
#1833594 - 07/17/13 02:47 PM HMDA & Application not fully completed
Red Raiders Offline
Diamond Poster
Red Raiders
Joined: May 2013
Posts: 1,069
Compliance Land
In our review of files we have found a file that:

1. only has basic information regarding the borrower (no assets, liabilities, property value or income)
2. monitoring information was not obtained
3. app doesn't indicate whether it was face-to-face, telephone, etc.
4. doesn't have the purpose marked
5. loan amount requested is similar to amount of current 1st with our bank
6. LO marked this as "withdrawn" before the early disclosures were required to be provided

My questions are:

1. Is this reportable or is it not since it doesn't meet the criteria for a complete application (no income or property value)?
2. If reportable, would income be "na"?
3. If reportable, would you report purpose as "refinance" even though this wasn't marked on the app?

Anything else I am not thinking of??
_________________________
How long until retirement?? smile

Return to Top
Lending Compliance
#1833616 - 07/17/13 03:24 PM Re: HMDA & Application not fully completed Red Raiders
Dan Persfull Online
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
1. HMDA does not address "complete" applications. Its reporting requirements apply to all applications (incomplete or complete) that are for a home purchase, home improvement or refinancing.

2. You have no choice but to report NA, but in my report I would outline management's (notice I said management's) responsibility to have procedures in place to collect all required information. See page 2 of the GIR. If the app doesn't indicate the mode of receipt then it is assumed received in person until the MLO documents differently.

3. I would have to question the MLO before answering this question but based on the information you provided I would lean toward a refinancing.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#1833634 - 07/17/13 03:54 PM Re: HMDA & Application not fully completed Red Raiders
Red Raiders Offline
Diamond Poster
Red Raiders
Joined: May 2013
Posts: 1,069
Compliance Land
Thanks for the response, Dan! I have a little bit of a follow up question.

Since we need to assume the application was received in person but GMI was not completed, it is ok to use GMI that was listed on our HMDA input sheet that was completed by the LO?
_________________________
How long until retirement?? smile

Return to Top
#1833643 - 07/17/13 04:06 PM Re: HMDA & Application not fully completed Red Raiders
Dan Persfull Online
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
I need to clarify my "assumption statement".

When I have this situation, which thankfully is few and far between, I assume the app was taken in person. I then contact the MLO and identify the issues and then they must document to me in writing how, why, when and what transpired. The GMI is then reported based on their documentation. If they document it was not taken in person then the input sheet should match what was provided on the application.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#1833647 - 07/17/13 04:09 PM Re: HMDA & Application not fully completed Red Raiders
Red Raiders Offline
Diamond Poster
Red Raiders
Joined: May 2013
Posts: 1,069
Compliance Land
Unfortunately this LO is not here anymore. The bulk of our apps start out over the phone, very few in person. If I had to guess I would say that this one was a phone app because it was not signed, hence I would not list GMI on the LAR??
_________________________
How long until retirement?? smile

Return to Top
#1833661 - 07/17/13 04:24 PM Re: HMDA & Application not fully completed Red Raiders
Dan Persfull Online
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
The bulk of our apps start out over the phone, very few in person.

Our situation is reverse and that is why I assume in person applications until documented otherwise.

My assumption is based on how we conduct business, your assumption would have to be based on how you conduct business.

If I had to guess I would say that this one was a phone app because it was not signed, hence I would not list GMI on the LAR??

This is tough one by not being able to talk to the MLO. Did he ask for the info and record it on the form but not the application, or did he make an assumption and recorded the information?

Not being able to document what the MLO did you are going to have to make your best assumption and report based on, what Gibbs would say, what your gut tells you. Just document why your gut told you to report it the way you end up reporting it.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top

Moderator:  Andy_Z