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#2205322 - 02/07/19 02:40 PM Increased Loan Amount-App Ultimately Declined
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In the mountains
We have an application for a large overnight rental home. The initial request for loan amount was $977,500. The applicant increased this to $1,020,000 because the agreed sale contract price increased. We moved forward with the increased loan amount. Ultimately we had to decline the loan because of issues found on the property and within the inspection report.

Do we report the increased loan amount requested or the initial requested amount?
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#2205327 - 02/07/19 02:47 PM Re: Increased Loan Amount-App Ultimately Declined Likes to Comply
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 79,292
Galveston, TX
The real question - is it a dwelling? There has been a lot of discussion whether overnight rental property is similar to transitional housing.
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#2205339 - 02/07/19 03:03 PM Re: Increased Loan Amount-App Ultimately Declined Likes to Comply
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Diamond Poster
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In the mountains
I still need an answer to my question though because it could happen on a run of the mill home being purchased as a primary residence.

Randy - would you mind to elaborate on who is discussing this - has the CFPB or any of the Regulators indicated that a single family residence used as an overnight rental is not reportable? Could you please point me in the right direction...

Also I am going to rant...why would they even care if a dwelling is used as an overnight rental...they make us count pads of ground that could be used for manufactured homes...but not count an RV that someone lives in year round...this is just ridiculous. Why do they have to make it so terribly cumbersome to comply.
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#2205344 - 02/07/19 03:23 PM Re: Increased Loan Amount-App Ultimately Declined Likes to Comply
rlcarey Online
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rlcarey
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Galveston, TX
It was not a counter-offer, it was a customer modified application loan amount - you report the amount the customer applied for.

The discussions have been here on BOL.
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#2205354 - 02/07/19 03:54 PM Re: Increased Loan Amount-App Ultimately Declined Likes to Comply
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Diamond Poster
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Posts: 1,055
In the mountains
So the amount they applied for initially or the amount they ultimately requested during the process?
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#2205359 - 02/07/19 04:50 PM Re: Increased Loan Amount-App Ultimately Declined Likes to Comply
Tracey, CRCM Offline
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Joined: Jul 2015
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Gorham, ME
applied for- the $977,500
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#2205378 - 02/07/19 05:56 PM Re: Increased Loan Amount-App Ultimately Declined Likes to Comply
hmdagal Offline
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hmdagal
Joined: Dec 2002
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We would report the increased amount as long as it was requested by the customer.

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#2205385 - 02/07/19 07:02 PM Re: Increased Loan Amount-App Ultimately Declined Likes to Comply
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 79,292
Galveston, TX
Yes - the revised request became your application.
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#2205393 - 02/07/19 07:50 PM Re: Increased Loan Amount-App Ultimately Declined Likes to Comply
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
I agree. They modified their request. Report 1,020,000.
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