Some great threads on the topic of how to HMDA code seemingly abandoned applications by the applicant but I'm still looking for the best way to handle the following scenario: Applicant applies, likely online, for a mortgage loan and bank obtains credit report and sends an LE and other earlies. Bank keeps calling applicant asking for ITP but no contact is made and applicant never returns calls.

HMDA guidance seems to confine action taken code of "withdrawn" to those applicants that "expressly withdrew" their applications. I don't think lack of a return phone call is expressly withdrawing. (At this point the applicant hasn't provided an ITP and we have collected no fees.) My second issue is the guidance on choosing "file closed for incompleteness"as an action taken as that reason code is seemingly confined to situations where the bank needs the applicant to provide more information about him/her self. The bank isn't really looking for additional info about John and Jane other than an ITP in order that we can collect fees or am I being too technical on closed for incompleteness?

So, would the above situation cause you to: 1) Code on LAR as Withdrawn after the initial communications which are not returned by the applicant ; 2) Send an AAN with denial reason of incomplete and code on LAR as a denied application; or 3) Send a NOI, followed up by a LAR coding of Closed for Incompleteness when there is no response from the applicant?

I'm looking for the option that leads to the lesser amount of regulatory scrutiny.

Thanks in advance.

The bank isn't really looking for additional info about John and Jane other than an ITP

That implies you have enough information to make a credit decision. What information would your NOI ask for?

Thanks Dan. I misspoke. The bank is first looking for an ITP in order that it can request a fee for an application. They are also attempting to contact the customer for information concerning VOE, VOI, etc. Essentially, these are loan requests where the bank issued an initial LE but never received an ITP back from the customer prior to the expiration of the estimated closing costs date. The customer was shopping Bank A but wound up falling in love with the LE from Bank B.

The customer was shopping Bank A but wound up falling in love with the LE from Bank B.

If the applicant has not contacted the bank to withdraw their loan request then your options are:

1. Deny for an incomplete application, or
2. Send the NOI and then close the file for incompleteness if they don't respond by the specified date.

Yes, agree with @Dan. Basically, either (2) or (3) from your initial post would work. These are not withdrawals. Depending on your policies/procedures for credit, an ITP could be something that you consider as necessary to have a "completed" application. Also, because of not getting other things dependent on the ITP, those would likely stop from having a "completed" application as well.