We, as the Investor, sometimes underwrite the mortgage with our U/W staff. So this would be a loan from Correspondent "ABC". When we get the loan to UW from ABC, we may sometimes suspend the loan for something (additional information, documentation, etc. - likely to be denied because we don't have what we need) during the Underwrite but BEFORE we make the credit decision. If we didn't make a credit decision and ABC pulls back their loan, how do we document that for HMDA?

I think it looks like a Withdraw, but we would not have the information if the Borrower is withdrawing or just the Correspondent Lender is withdrawing it from us and selling it to a new investor.

Do you send out an NOI requesting the necessary items?

No we do not send out a NOI because it is Bank A who is withdrawing the loan from Bank B not the borrower.

If the correspondent withdraws the application prior to you making a credit decision, then the correspondent would be responsible for reporting. This should all be outlined in your correspondent agreements.

rlcarey is this listed in any section of the regulation?

Not really, but the creditor that makes the loan decision reports the loan. If you did not make a decision, then it would fall back to your correspondent. You have no idea who withdrew the application so you cannot report it as withdrawn by the applicant.

Well, I was more saying how do they know that additional information is required for you to decision the app. But, I guess however you do the correspondent process. I agree with RL here conceptually. My understanding is if the broker/correspondent takes away the file before you make any kind of decision, or you reject the file (because you are aware of Compliance violations for instance), then you really have no application to speak of.