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#2270647 - 05/19/22 03:11 PM Preapproval approved not accepted
JoAnne S Offline
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Joined: Aug 2020
Posts: 8
There is some confusion in my shop on how to treat applications that started as preapprovals especially with approved not accepted applications. Two lines of thought here:

Some are saying that once a property has been identified (evidenced with Purchase Agreement/Appraisal), the application should no longer be considered as a preapproval and would not be coded as one on the LAR. So those applications would be coded as 2 (preapproval not requested, and Action Taken of 2.

Others say that the preapproval status stays with the application and should be coded appropriately. 1 Preapproval Requested, 8 Preapproval Request Approved not accepted.


Another question: Are preapproval requests always on applications with TBD addresses or can you have a preapproval request that already has a property address identified?

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#2270653 - 05/19/22 03:47 PM Re: Preapproval approved not accepted JoAnne S
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 79,935
Galveston, TX
Paragraph 4(a)(4)
1. Request under a preapproval program. Section 1003.4(a)(4) requires a financial institution to report whether an application or covered loan involved a request for a preapproval of a home purchase loan under a preapproval program as defined by § 1003.2(b)(2). If an application or covered loan did not involve a request for a preapproval of a home purchase loan under a preapproval program as defined by § 1003.2(b)(2), a financial institution complies with § 1003.4(a)(4) by reporting that the application or covered loan did not involve such a request, regardless of whether the institution has such a program and the applicant did not apply through that program or the institution does not have a preapproval program as defined by § 1003.2(b)(2).

If you have an address, you have a full blown application.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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