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#1990483 - 01/22/15 08:30 PM Withdrawn Loan App?
Red Raiders Offline
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Red Raiders
Joined: May 2013
Posts: 1,054
Compliance Land
Looking at a non-originated loan file. Scenario:

- Applicant gives LO six pieces of info needed for RESPA app and asks if he might be able to refinance.
- LO calls back applicant the day after and the next day leaving message for applicant to call back.
- Instead of issuing early disclosures, the file is closed stating the app is withdrawn because the customer didn't respond.

In my head, this doesn't make sense but I'm wondering if I'm looking at it wrong. I would think we issue the early disclosures and include our normal notice of incompleteness letter listing the additional items needed. If the borrower doesn't respond after that then so be it but I'm not sure why (or how) we closed it within 3 days of application because the customer didn't call back. Am I missing something?
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#1990484 - 01/22/15 08:38 PM Re: Withdrawn Loan App? Red Raiders
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,637
Bloomington, IN
An applicant's failure to respond to messages is not a basis to consider the application withdrawn by the applicant. Only the applicant can expressly withdraw the application.

This is a denial for apparently an incomplete application and it does not appear the loan officer denied the loan within the required 3 business days since they treated it as a withdrawal.
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#1990496 - 01/22/15 08:57 PM Re: Withdrawn Loan App? Red Raiders
swiggles Offline
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swiggles
Joined: Aug 2001
Posts: 7,333
Just curious.....what was incomplete regarding the application?
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#1990507 - 01/22/15 09:16 PM Re: Withdrawn Loan App? Red Raiders
Red Raiders Offline
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Red Raiders
Joined: May 2013
Posts: 1,054
Compliance Land
We would have needed paystubs, bank statements, etc. to fully underwrite.
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