Thread Options
|
#1982416 - 12/11/14 03:20 PM
auction
|
Gold Star
Joined: Apr 2012
Posts: 264
one state over
|
I'm stuck on this one and need some advice.
Customer owns a chunk of land and comes to get "prequalified" to bid on a house that the local high school built and will auction off. they plan to move it onto the property.
They do not "win" the auction and never contact the bank again.
1. is this reportable as a purchase? 2. if so, what would the denial reason would be? (or would it be withdrawn?)
_________________________
CRCM
"Strip the Flesh, Salt the Wound" - Krieg
|
Return to Top
|
|
|
|
#1982417 - 12/11/14 03:24 PM
Re: auction
DoS
|
Power Poster
Joined: Aug 2001
Posts: 7,351
|
No denial reasons....it's not a denial. If you have a property address.....which you do......the loan cannot be a pre-qualification. For HMDA, I would report as withdrawn.
....just my opinion....anyone care to shoot me down??
_________________________
The more you sweat in training, the less you bleed in battle.......
|
Return to Top
|
|
|
|
#1982428 - 12/11/14 03:39 PM
Re: auction
DoS
|
10K Club
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
|
Well it will all depend how the loan commitment was structured. Without that information we really can't opine whether the transaction is a denial, closed for incompleteness or an approved but not accepted but I really don't see where a withdrawal would be applicable because it does appear a credit decision was made. Review the Conditional Approval sections. http://www.ffiec.gov/hmda/faqreg.htm#action
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.
|
Return to Top
|
|
|
|
#1982434 - 12/11/14 03:44 PM
Re: auction
DoS
|
10K Club
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
|
Until it's actually put on the foundation it doesn't have an address so it could still be a prequal.
I don't agree. Using that logic then the purchase of a mobile (manufactured home) or modular home would never be reportable because what you are saying is that until the home is actually set on the foundation then you do not know where it's going to be located.
The applicant intended to purchase the pre-built home and move it to land they own therefore they had the property identified IMO.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.
|
Return to Top
|
|
|
|
#1982436 - 12/11/14 03:44 PM
Re: auction
DoS
|
Power Poster
Joined: Aug 2001
Posts: 7,351
|
I guess I was thinking that there IS a property location for the house....the house just isn't there yet.
_________________________
The more you sweat in training, the less you bleed in battle.......
|
Return to Top
|
|
|
|
#1982442 - 12/11/14 03:51 PM
Re: auction
DoS
|
Gold Star
Joined: Apr 2012
Posts: 264
one state over
|
the loan was approved pending additional underwriting criteria (appraisal, site survey, etc.)
The house was built by students on school property to be moved off of school property upon the sale to the highest bidder.
_________________________
CRCM
"Strip the Flesh, Salt the Wound" - Krieg
|
Return to Top
|
|
|
|
#1982775 - 12/12/14 04:20 PM
Re: auction
DoS
|
Gold Star
Joined: Apr 2012
Posts: 264
one state over
|
to recap it IS reportable
It would be reported as "approved not accepted" (based on Dan's link)
Is this correct?
This whole transaction confuses me ....
_________________________
CRCM
"Strip the Flesh, Salt the Wound" - Krieg
|
Return to Top
|
|
|
|
#1982781 - 12/12/14 04:31 PM
Re: auction
DoS
|
10K Club
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
|
the loan was approved pending additional underwriting criteria (appraisal, site survey, etc.)
It would be reported as "approved not accepted" (based on Dan's link)
Is this correct?
Based on the information you have provided if you gave the applicant a written conditional approval advising them the need for an appraisal, survey, etc. and one was not obtained due to the inactions of the applicant then you will report this as a closed for incompleteness.
If you only gave them a verbal commitment then you will report this as a denial for an incomplete application.
See the Conditional approvals---failure to satisfy creditworthiness conditions discussion in the above link.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.
|
Return to Top
|
|
|
|
#1982882 - 12/12/14 07:35 PM
Re: auction
DoS
|
Gold Star
Joined: Apr 2012
Posts: 264
one state over
|
got it, thank you, Dan.
_________________________
CRCM
"Strip the Flesh, Salt the Wound" - Krieg
|
Return to Top
|
|
|
|
#1982897 - 12/12/14 08:24 PM
Re: auction
DoS
|
Gold Star
Joined: Apr 2012
Posts: 264
one state over
|
alright, upon further discussion we also don't have a physical address yet. We have the description but no street address.
the guide states "If information about the potential site of a mobile or manufactured home is not available, an institution reports using the Code for “not applicable.”"
Even though this is not a mobile home would I still report it as "NA"? or should I pull up the map and search it that way?
this loan is making me feel REAL dumb!
_________________________
CRCM
"Strip the Flesh, Salt the Wound" - Krieg
|
Return to Top
|
|
|
|
#1982908 - 12/12/14 09:11 PM
Re: auction
DoS
|
Power Poster
Joined: Aug 2001
Posts: 7,351
|
Talking off the top of my head here, but if there is a location....a piece of dirt.....it doesn't have to have a street address.....a legal description or metes and bounds is still a location.
_________________________
The more you sweat in training, the less you bleed in battle.......
|
Return to Top
|
|
|
|
#1982972 - 12/14/14 09:56 PM
Re: auction
DoS
|
Power Poster
Joined: Apr 2001
Posts: 4,828
Between the lines
|
Agree with swiggles, the applicant has told you he will put it on his land, you have identified the "dirt". Street address not required, you will need to report the location.
_________________________
NOLA is my Beach!
|
Return to Top
|
|
|
|
#1982973 - 12/14/14 10:11 PM
Re: auction
DoS
|
Power Poster
Joined: Apr 2001
Posts: 4,828
Between the lines
|
Agree with swiggles, the applicant has told you he will put it on his land, you have identified the "dirt". Street address not required, you will need to report the location.
_________________________
NOLA is my Beach!
|
Return to Top
|
|
|
|
|
|