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#2058331 - 01/13/16 03:49 PM Prequalification - Address but no Loan Amount
gunches Offline
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Joined: Dec 2005
Posts: 210
We received an application to pre-qualify a borrower. There was an address of property, but no loan amount. Is this HMDA reportable?

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#2058333 - 01/13/16 03:53 PM Re: Prequalification - Address but no Loan Amount gunches
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 77,591
Galveston, TX
How can you have a pre-qual with an address???
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#2058335 - 01/13/16 03:56 PM Re: Prequalification - Address but no Loan Amount rlcarey
gunches Offline
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Joined: Dec 2005
Posts: 210
Borrower had found a property they liked and wrote the address on the application.

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#2058336 - 01/13/16 04:00 PM Re: Prequalification - Address but no Loan Amount gunches
swiggles Offline
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swiggles
Joined: Aug 2001
Posts: 7,333
Incomplete application until borrower submits an amount?.....just guessing....
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#2058340 - 01/13/16 04:04 PM Re: Prequalification - Address but no Loan Amount gunches
Rocky P Online
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Joined: Jun 2003
Posts: 7,261
Florida
IMHO, usually, there are three types of "application" very much simplification

Pre-qualify - "how much house can I afford" - s/b no credit pulled and information solely from documents provided - "based on your income and cash, you can afford a home in the $xxx to $xxx range with 20% down". Not HMDA reportable

Pre approval - "I'm looking for a house and want to know if I would qualify" - bank underwrites the loan, performs verifications and approves subject to suitable property being found. "You are approved for $XXX until xx/xx/xx subject to the property being suitable" HMDA reportable

Application - underwritten with property - HMDA reportable
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#2058343 - 01/13/16 04:10 PM Re: Prequalification - Address but no Loan Amount Rocky P
swiggles Offline
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Quote:
Pre approval - "I'm looking for a house and want to know if I would qualify" - bank underwrites the loan, performs verifications and approves subject to suitable property being found. "You are approved for $XXX until xx/xx/xx subject to the property being suitable" HMDA reportable


Back to the age-old debate....how do you perform verifications without providing the applicant with a Loan Estimate? This is the reason why at my current bank and two prior, there is/was no pre-approval program. We DO pre-qualify and for that, we DO obtain a credit report. The decision is then based on information the applicant provided on the application.
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