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!

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.

Thanks