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#2246073 - 12/02/20 06:11 PM Deianl with counter offer for "acceptable CB"
Shih_Tzu_Lvr Offline
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Can you deny an application with the counter offer stating an "acceptable co-borrower".

I know it would be a reg b violation if I stipulate who the co-borrower has to be, but if we don't indicate who the co-borrower is then are we compliant?

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#2246075 - 12/02/20 06:36 PM Re: Deianl with counter offer for "acceptable CB" Shih_Tzu_Lvr
rlcarey Offline
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As long as you are willing to make the loan under that condition, I see no problems with it.
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#2246092 - 12/02/20 09:51 PM Re: Deianl with counter offer for "acceptable CB" Shih_Tzu_Lvr
raitchjay Offline
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OK
Very standard counteroffer we use here.
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#2247462 - 01/11/21 05:17 PM Re: Deianl with counter offer for "acceptable CB" raitchjay
CloudShape Offline
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Adding a twist

If the CB is not acceptable, would you say the borrower 'accepted' the counteroffer (they did get a CB) and use the action date of when you denied the CB or would you say the borrower did not accept the counteroffer (because the CB was not acceptable) and use the counteroffer date as the action date?
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#2247463 - 01/11/21 05:21 PM Re: Deianl with counter offer for "acceptable CB" CloudShape
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That is really a HMDA question and I am asking from a HMDA perspective. . . .
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#2247471 - 01/11/21 05:55 PM Re: Deianl with counter offer for "acceptable CB" Shih_Tzu_Lvr
rlcarey Offline
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IMHO - If they did not provide an acceptable co-borrower by the time the counter-offer expired, then the original denial stands.
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#2247479 - 01/11/21 07:20 PM Re: Deianl with counter offer for "acceptable CB" rlcarey
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Thank you Randy. That was our thinking also, but wanted to make sure we were thinking correctly.
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#2247488 - 01/11/21 08:57 PM Re: Deianl with counter offer for "acceptable CB" Shih_Tzu_Lvr
Inherent_Risk Offline
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I think you have some options depending on your general practices. We generally use the date of notice for our action taken date on denials. Was the counter a combined AAN? Did you send an AAN after rejecting the co-applicant? Depending on how you usually report your action taken and when you sent notices, you could use a few different dates. I wouldn't stray from your general practices.

1003.4(a)(8)(ii)- 2. Action taken date - applications denied and files closed for incompleteness. For applications, including requests for a preapproval, that are denied or for files closed for incompleteness, the financial institution reports either the date the action was taken or the date the notice was sent to the applicant.

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