On a commercial loan and the application says TBD LLC, John Doe Guarantor, Jane Doe Guarantor and the application ends up being withdrawn or approved not accepted..... was the applicant really an entity for HMDA reporting? Not sure how to report that since the LLC was never established, or is it even an application when the credit analysis is done on a "what if" situation and because the guarantors and seller weren't able to come to an agreement on sale price after an inspection of the property, they walked away and the LLC was never established?

Been lots of discussion on this in the past....i'm of the belief that applications shouldn't be taken in the names of non-existent entities. I would have them apply as individuals (and DI gathered if applicable) and if they later form the LLC, the application can be amended at that time. Not sure how much that helps with your current situation.

Bank is new to HMDA (2022 year and this was started in 2021 I did a search using TBD but didn't come up with previous discussions) and I would agree with you. This is always the issue with CML lending. An analysis is started "just to see and be ready" then how is it handled when everything falls apart!

This practice isn't new, for certain. Individual borrowers were coming to banks for funding decades ago, before HMDA, planning to set up an entity that would be the actual borrower, and the individuals were considered the borrowers until the entity was finalized.

Because the entity in your scenario never materialized, I think you have to consider the individual(s) as the applicant(s) and complete your LAR accordingly.