Thread Options
#2058483 - 01/13/16 09:37 PM Intent to Proceed
Tracey, CRCM Offline
Platinum Poster
Joined: Jul 2015
Posts: 542
Gorham, ME
Hi all- need opinions. Does the 30 day requirement for a decision start ticking at application date, or when intent to proceed is given (if date is different than application date)?

Differing opinions here, that I need to settle.
_________________________
Tracey

Return to Top
TRID - TILA/RESPA Integrated Disclosures Rule
#2058490 - 01/13/16 09:51 PM Re: Intent to Proceed Tracey, CRCM
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 77,277
Galveston, TX
Application.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2058526 - 01/14/16 12:10 AM Re: Intent to Proceed Tracey, CRCM
Working From Home Offline
Gold Star
Joined: Oct 2009
Posts: 252
"Complete Application" not just application. The date you have a complete application my be different than application date (depending on your definition of what a complete application is at your institution).

Return to Top
#2058527 - 01/14/16 12:13 AM Re: Intent to Proceed Tracey, CRCM
CRL Offline
Platinum Poster
CRL
Joined: Sep 2003
Posts: 562
So if your policy states that a "complete application" was upon receipt of a,b,c, and c is "borrowers intent to proceed", then yes, that could be the start of the 30-day ECOA notification clock?

Return to Top
#2058531 - 01/14/16 01:28 AM Re: Intent to Proceed Tracey, CRCM
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 77,277
Galveston, TX
NA is correct. A "borrowers intent to proceed" has nothing to do with the timing requirements of Regulation B. The consumer could have given you a complete application on day one or ten days after the intent to proceed was received. Don't get Reg. Z involved with Reg. B. and you will be much better off. You don't need an intent to proceed to underwrite a loan and I doubt that 1 in a 1000 applications would be considered complete before you received an intent to proceed. If you have more than that, then your loan officers are requiring more than they should prior to accepting an application.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2058579 - 01/14/16 02:35 PM Re: Intent to Proceed Tracey, CRCM
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,422
Bloomington, IN
"Complete Application" not just application.

There are two timing requirements.

If you receive an incomplete application today you must either deny the application for an incomplete application or send a notice of incompleteness within 30 days from today if you have not received the information needed to complete the application.

From 1002.9.

(c) Incomplete applications. (1) Notice alternatives. Within 30 days after receiving an application that is incomplete regarding matters that an applicant can complete, the creditor shall notify the applicant either:

(i) Of action taken, in accordance with paragraph (a) of this section; or

(ii) Of the incompleteness, in accordance with paragraph (c)(2) of this section.


Once you have a completed application then you have 30 days from the date of completion to advise the applicant of the credit decision.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#2059201 - 01/18/16 10:16 PM Re: Intent to Proceed Tracey, CRCM
CRL Offline
Platinum Poster
CRL
Joined: Sep 2003
Posts: 562
Thanks, got it - don't confuse/combine regs. The borrower's Reg Z "intent to proceed" is not a piece of determining what a "complete application" is for Reg B.

Return to Top
#2060493 - 01/26/16 03:10 PM Re: Intent to Proceed rlcarey
Lil Firecracker Offline
Junior Member
Joined: Jul 2014
Posts: 30
Quote:
[/quote]You don't need an intent to proceed to underwrite a loan and I doubt that 1 in a 1000 applications would be considered complete before you received an intent to proceed[quote]


If you send out TRID but don't receive the intent to proceed within 30days, do you consider this a withdrawal even though you have already pulled credit?

Return to Top
#2060498 - 01/26/16 03:14 PM Re: Intent to Proceed Tracey, CRCM
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 77,277
Galveston, TX
Withdrawal for what purpose?

You have to either send a AAN or an incomplete notice to the customer under Reg. B.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2060501 - 01/26/16 03:18 PM Re: Intent to Proceed Tracey, CRCM
Lil Firecracker Offline
Junior Member
Joined: Jul 2014
Posts: 30
Adverse Action Notice saying intent to proceed was not received?....but is it considered to be a withdrawal is my question, you would not process as a denial based on any credit factors correct?

Return to Top
#2060509 - 01/26/16 03:29 PM Re: Intent to Proceed Tracey, CRCM
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 77,277
Galveston, TX
Again, can you please specify the context you are talking about - withdrawal under what regulation or in what context - Reg. B or C or some internal classification?

Under Regulation B a withdrawal only occurs when:

Official Interpretation

Section 1002.9—Notifications

2. Expressly withdrawn applications. When an applicant expressly withdraws a credit application, the creditor is not required to comply with the notification requirements under §1002.9. (The creditor must comply, however, with the record retention requirements of the regulation. See §1002.12(b)(3).)

Without an express withdrawal from the applicant (which would not be just the fact that you got no response from the applicant), you would have to follow the notification requirements under 1002.9(b) or (c) and within the timing requirements of 1002.9(a).
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2064126 - 02/12/16 05:27 PM Re: Intent to Proceed Tracey, CRCM
UpNorth88 Offline
Junior Member
Joined: Nov 2005
Posts: 46
If customer is handed LE, etc. and comes back next day to bank and gives us Intent to Proceed can the CLOD get issued right away?

Return to Top
#2064212 - 02/12/16 08:38 PM Re: Intent to Proceed Tracey, CRCM
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,336
Cape Cod
Theoretically, yes. Just know that closing can't take place sooner than the 7th business day after the LE was delivered or placed in the mail, and that the more time that passes between delivery of the CloD and closing, the greater the potential for a fee increase that you won't be able to pass on to the borrower.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top