Thread Options
#1963754 - 09/22/14 09:32 PM Commercial loan applicant not properly denied
Red Raiders Offline
Diamond Poster
Red Raiders
Joined: May 2013
Posts: 1,054
Compliance Land
I recently read an article about a lawsuit against a bank from a commercial loan applicant that wasn't properly notified of a denial that had to close its doors. The applicant won because it said it assumed the loan was coming that would fund operating (or something like that).

Does this ring a bell with anyone? I can't locate it now and it would be helpful to prove a point to a couple of the people here at the bank. Not sure why I didn't save it when I read it. smile
_________________________
How long until retirement?? smile

Return to Top
Lending Compliance
#1964040 - 09/23/14 07:00 PM Re: Commercial loan applicant not properly denied Red Raiders
Red Raiders Offline
Diamond Poster
Red Raiders
Joined: May 2013
Posts: 1,054
Compliance Land
I know this isn't helpful but I also can't remember if it was a recent article or something a few years old. I thought it was interesting when I was reading but I didn't save it and now it is extremely relevant to a situation that has come up here and I can't find it.
_________________________
How long until retirement?? smile

Return to Top
#1964127 - 09/23/14 10:05 PM Re: Commercial loan applicant not properly denied Red Raiders
fmissle Online
Platinum Poster
Joined: Jul 2007
Posts: 977
Pac NW
I couldn't find anything specific to what you were looking for.

Although there are some decent papers out there on Lender Liability, some of which may contain the type of information you're looking for.

I've read some of this one specifically, but I don't know when it's from or who wrote it... so take it all with a grain of salt.
http://apps.americanbar.org/abastore/products/books/abstracts/5070531_SamCh.pdf

Return to Top
#1964132 - 09/23/14 10:35 PM Re: Commercial loan applicant not properly denied Red Raiders
Kathleen O. Blanchard Offline

10K Club
Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,277
Originally Posted By: raiders
I recently read an article about a lawsuit against a bank from a commercial loan applicant that wasn't properly notified of a denial that had to close its doors. The applicant won because it said it assumed the loan was coming that would fund operating (or something like that).

Does this ring a bell with anyone? I can't locate it now and it would be helpful to prove a point to a couple of the people here at the bank. Not sure why I didn't save it when I read it. smile


You might find something helpful in this article from a law firm.

Article Lender Liability
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

Return to Top
#1964457 - 09/24/14 09:41 PM Re: Commercial loan applicant not properly denied Red Raiders
Red Raiders Offline
Diamond Poster
Red Raiders
Joined: May 2013
Posts: 1,054
Compliance Land
Thanks for the links. Not exactly what I saw but still helpful!
_________________________
How long until retirement?? smile

Return to Top

Moderator:  Andy_Z