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#2261784 - 10/28/21 07:05 PM HMDA scenario - withdrawn or denied
Compliance Nut Offline
100 Club
Joined: Feb 2016
Posts: 118
This is not an application for a preapproval....

An applicant is approved pending receipt of bank statements to verify assets and they call to say they are moving and will not be providing the statements. They didn't specifically say "I am withdrawing", so in an audit there would be no source document to verify the applicant expressly withdrew. A NOIA was not sent. Would this be a denial or a withdrawal?

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#2261819 - 10/29/21 12:41 PM Re: HMDA scenario - withdrawn or denied Compliance Nut
rlcarey Online
10K Club
Joined: Jul 2001
Posts: 79,254
Galveston, TX
Closed for incompleteness if you sent them the proper notice or denied for an incomplete application.

I would not call the confirmation of assets a customary commitment or closing condition. It is an underwriting condition.
The opinions expressed here should not be construed to be those of my employer:

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#2261821 - 10/29/21 01:08 PM Re: HMDA scenario - withdrawn or denied Compliance Nut
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,762
Bloomington, IN
Since you state the notice of incompleteness was not provided, and the applicants did not expressly withdraw the request, then I agree with Randy that it would be a denial for an incomplete application.
The opinions expressed are mine and they are not to be taken as legal advice.

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#2261882 - 11/01/21 01:51 PM Re: HMDA scenario - withdrawn or denied Compliance Nut
Compliance NABW Offline
Diamond Poster
Joined: Oct 2015
Posts: 1,597
I guess it depends how in depth you want to go with what precise terminology an applicant needs to use to withdraw. It basically sounds like they are no longer interested. I could justify calling this a withdrawal, but, otherwise, I agree it's a denial for incompleteness. Do they really need to exactly use the specific word "withdraw?" If a Bank calls an applicant that they haven't heard from in a couple months and the person says, "I got a loan somewhere else" and then hangs up, is that not a withdrawal?

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