Hello,

We received and application from our third-party originator (TPO) and began the underwriting process. Before a credit decision was made the TPO withdrew the application to send to a different Financial Institution. I believe that this would be recorded as a "withdrawn" application on our LAR.

Comment 4(a)-3
ii. Financial Institution A received an application for a covered loan from an applicant and forwarded that application to Financial Institution B. Financial Institution B reviewed the application before the loan would have closed, but the application did not result in an origination because Financial Institution B denied the application. Financial Institution B was not acting as Financial Institution A's agent. Since Financial Institution B made the credit decision, Financial Institution B reports the application as a denial. Financial Institution A does not report the application. If, under the same facts, the application was withdrawn before Financial Institution B made a credit decision, Financial Institution B would report the application as withdrawn and Financial Institution A would not report the application.

Any thoughts on this would be appreciated.

Thank you
Last edited by Aruba123; 02/09/21 03:39 PM.