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#2135563 - 06/23/17 03:04 PM
Intent to proceed
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Platinum Poster
Joined: Jul 2015
Posts: 542
Gorham, ME
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Customer applies for loan on June 9th. LE is issued. Customer has not provided intent to proceed as of today. What are our options? I know we can issue a new LE as the initial one expired. But:
1- Decision as incomplete? 2- Send incomplete letter for intent to proceed? 3- Wait until day 30 and deny as incomplete?
What are others doing in these situations?
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Tracey
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#2135587 - 06/23/17 04:19 PM
Re: Intent to proceed
Tracey, CRCM
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Platinum Poster
Joined: Jul 2015
Posts: 542
Gorham, ME
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We have called customer and he has indicated that he will not give intent until an issue with the property is resolved (why the LO took the application I don't know). My thought is that we close the file as incomplete now, and once the property issue is resolved, he reapplies.
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Tracey
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#2135590 - 06/23/17 04:38 PM
Re: Intent to proceed
Tracey, CRCM
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10K Club
Joined: Jul 2001
Posts: 83,364
Galveston, TX
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he has indicated that he will not give intent until
Sounds like a withdrawal to me
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#2135608 - 06/23/17 05:39 PM
Re: Intent to proceed
Tracey, CRCM
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Platinum Poster
Joined: Jul 2015
Posts: 542
Gorham, ME
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I thought of that Randy also- but not sure I can get away with noting the file as such, as he has said he wants his application to stay active? But won't give intent...
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Tracey
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#2135619 - 06/23/17 05:49 PM
Re: Intent to proceed
Tracey, CRCM
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Power Poster
Joined: Oct 2009
Posts: 9,105
OK
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Yes, but if "issue with property" never gets resolved, he would be out appraisal and title fees, etc.
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#2135623 - 06/23/17 05:53 PM
Re: Intent to proceed
Tracey, CRCM
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Platinum Poster
Joined: Jul 2015
Posts: 542
Gorham, ME
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I think that is the issue Raitchjay- he doesn't want us ordering appraisal/title, etc.
Again, Loan officer should not have even taken the application!
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Tracey
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#2135625 - 06/23/17 05:56 PM
Re: Intent to proceed
Tracey, CRCM
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10K Club
Joined: Nov 2002
Posts: 20,656
The Swamp
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What makes you think the LO would have known there was an issue? If a customer wants to apply, that's pretty much their call, not ours.
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My opinion only. Not legal advice. Say you'll haunt me - Stone Sour
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#2135629 - 06/23/17 06:00 PM
Re: Intent to proceed
Tracey, CRCM
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Power Poster
Joined: Oct 2009
Posts: 9,105
OK
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The LO might well do that. Why would a re-issued LE after expiration automatically mean higher costs to the applicant? It wouldn't mean that at my bank.
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I'm fixin' to fix that.
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#2135631 - 06/23/17 06:14 PM
Re: Intent to proceed
Tracey, CRCM
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10K Club
Joined: Nov 2002
Posts: 20,656
The Swamp
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IMHO, it's a simple matter of documenting the file and continuing contact with the customer. The bank is not being lax by not completing underwriting...the applicant has ASKED for it to be placed on hold for some period of time while he works an issue out they may or may not be workable. I don't find that all that unusual nor particularly problematic. If you are real concerned, sum his request up in a letter and send it to him so you have even better documentation in your file that you aren't just dragging your feet.
I just closed out a loan this week, different circumstances in that it was actually an approved loan, but the borrower didn't want to close until 3 months later. We just put it on hold. Now it's closed.
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My opinion only. Not legal advice. Say you'll haunt me - Stone Sour
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#2135763 - 06/26/17 01:11 PM
Re: Intent to proceed
Tracey, CRCM
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Platinum Poster
Joined: Jul 2015
Posts: 542
Gorham, ME
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Thanks all. The LO did know there was an issue with the property (the borrower provided that information at the time of application).
I can certainly send out an incomplete letter- but at this point, do I include all the documentation needed (paystubs, assets, etc) and intent to proceed as the reason for the incompleteness? Or just intent?
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Tracey
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#2135766 - 06/26/17 01:21 PM
Re: Intent to proceed
Tracey, CRCM
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10K Club
Joined: Aug 2002
Posts: 47,530
Bloomington, IN
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The purpose of a NOI is to inform the applicant of the information needed to complete the application. Will intent only complete the application?
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#2135778 - 06/26/17 01:54 PM
Re: Intent to proceed
Tracey, CRCM
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Platinum Poster
Joined: Jul 2015
Posts: 542
Gorham, ME
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No but I can't request documents for underwriting if I don't have intent, correct?
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Tracey
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#2135783 - 06/26/17 02:09 PM
Re: Intent to proceed
Tracey, CRCM
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10K Club
Joined: Jul 2001
Posts: 83,364
Galveston, TX
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You can't request verification documents before you issue the LE. After you issue the LE you are free to request anything you need.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com
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#2170106 - 03/26/18 05:47 PM
Re: Intent to proceed
Tracey, CRCM
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Diamond Poster
Joined: Nov 2006
Posts: 1,409
California
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We issued our LE on a construction-only loan 2 days ago. Today, the applicant called the LO to verbally request a substantial increase in the loan amount. As we don't accept verbal applications, we asked for him to complete the first page of the application - which we should get today (thus beginning our 3-day clock). Can we ask for a revised budget as well as the application - before we start our 3-day period within which we must issue the revised LE? (We suspect the applicant hasn't worked the increase into his budget but is just asking for more money "just in case".)
Also, the LO is asking if we can request tax returns BEFORE we get "Intent to Proceed"? I'm thinking that the only limitation is collecting fees before "Intent to Proceed" but as our LE has gone out, we can ask for supporting information before Intent. Right?
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#2170107 - 03/26/18 05:49 PM
Re: Intent to proceed
Tracey, CRCM
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10K Club
Joined: Jul 2001
Posts: 83,364
Galveston, TX
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Can we ask for a revised budget as well as the application - before we start our 3-day period within which we must issue the revised LE?
No, you cannot condition the issuance of an LE on anything other than the 6 elements.
Once you issue the LE you can request supporting documentation.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com
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#2170114 - 03/26/18 06:13 PM
Re: Intent to proceed
Tracey, CRCM
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10K Club
Joined: Oct 2000
Posts: 40,086
Cape Cod
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You've already issued the LE on the original request; you are not constrained from requesting additional documentation, but you can't hold up the three-day deadline for providing the LE once you have the 6 elements of an application.
Now that you are aware of a change in the borrower's request, you know that some of the costs in the LE are likely to change, and you have three business days from learning of that fact to get a revised LE out to the applicant (or you won't be able to increase the estimate basis for costs increasing due to the increased loan amount.
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