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#1884139 - 01/08/14 02:27 PM Commercial Applications - Documenting Verbal Apps
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Joined: Nov 2008
Posts: 1,061
In the mountains
It is our policy to obtain written, signed commercial applications. Our Special Assets department is working with a customer to refinance their troubled debt. They have had many email and telephone conversations and clearly have a verbal application, but have not obtained a written application as of yet.

Is it a problem to document the application date, the date the verbal discussions began, on the application, and then have the customer sign it at closing? Or should we just provide a memo documenting the actual application date and have the customer put the actual date they are signing the application on the app?

Clear as mud?

Thanks in advance!
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#1884148 - 01/08/14 02:48 PM Re: Commercial Applications - Documenting Verbal Apps Likes to Comply
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 79,912
Galveston, TX
Since this is clearly an internal policy, how you choose to handle this when it involves the special assets department is really up to the bank. I guess I have to ask. In these situations is the customer really applying for credit?

I think the bank is telling the customer - here is what we are going to do. Either you (the borrower) agree or we are coming after the collateral.

I don't see much of an application here.
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#1884188 - 01/08/14 03:34 PM Re: Commercial Applications - Documenting Verbal Apps Likes to Comply
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Thanks smile
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