We had a HMDA-reportable application where in order to originate the loan, the ex-spouse would need to sign documents and authorize the transaction (Texas). Because the applicant didn't feel comfortable approaching their ex, the loan officer asked if they wanted to withdraw their application. Note this was before creditworthiness was determined. In this scenario, would you see it as appropriate to report this application as a withdrawal, or should it be denied? The argument is that the requirement for the ex-spouse to sign documents is seen as a customary closing condition, not anything to do with creditworthiness or underwriting, so it can be reported as a withdrawal. Your thoughts?
Last edited by Help! Compliance; 01/12/23 04:41 PM.