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#2279763 - 01/12/23 05:31 PM Applicant doesn't provide DOB - code?
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San Antonio, TX
During the application process, while the co-applicant provided their DOB, the applicant did not. They withdrew their application, before it could be obtained and their credit pulled. That being said, the LOB reported the App Age as "8888." At first, I thought that would be correct, but the CFPB commentary only provides the following conditions in their FIG Commentary to report "8888":

To report not applicable, enter “Code 8888” for:
â–ª Purchased covered loans for which the financial
institution chooses not to report the applicant’s
or co-applicant’s age, Comment 4(a)(10)(ii)-3;
â–ª Covered loans or applications when applicant
or co-applicant is not a natural person,
Comment 4(a)(10)(ii)-4.


That being said, should we still report "8888"? After all, what else would we report?

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#2279768 - 01/12/23 06:11 PM Re: Applicant doesn't provide DOB - code? Help! Compliance
raitchjay Online
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I don't see how it would be n/a.....the applicant was a natural person. Do you really have a HMDA reportable application?

(b) Application—(1) In general. Application means an oral or written request for a covered loan that is made in accordance with procedures used by a financial institution for the type of credit requested.

I would think one of your procedures would be getting the applicant's date of birth on a HMDA reportable application. I guess what i'm saying is....if they "withdrew their application before it (their DOB) could be obtained and their credit pulled"....were they actually ever an applicant via your procedures?
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#2279793 - 01/13/23 02:34 PM Re: Applicant doesn't provide DOB - code? Help! Compliance
Dan Persfull Offline
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Dan Persfull
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Bloomington, IN
Well in this case then I would argue if their application process is to obtain the DOB and they did not then they have an incomplete application. So they would either have to deny it as an incomplete application or send the NOI and close it for incompleteness. So IMHO they have a reportable application.

If the application was made online, by telephone or face to face then the application was most likely made is accordance with the bank's procedures for accepting applications. Simply because the applicant failed to provide their DOB, or the loan officer failed to get it, is not IMHO a legitimate argument the bank does not have an application.

From Reg. B.
(c) Incomplete applications. (1) Notice alternatives. Within 30 days after receiving an application that is incomplete regarding matters that an applicant can complete, the creditor shall notify the applicant either:

(i) Of action taken, in accordance with paragraph (a) of this section; or

(ii) Of the incompleteness, in accordance with paragraph (c)(2) of this section.

And from the GIR

9.2.2 HMDA responsibilities
A Financial Institution’s management should ensure that procedures and systems exist to collect
and maintain accurate data for each Covered Loan and Application that the Financial Institution
is responsible for reporting.

Claiming you don't have an application because of missing information, especially information the applicant can provide, is a dangerous precedent.
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#2279795 - 01/13/23 02:37 PM Re: Applicant doesn't provide DOB - code? Help! Compliance
raitchjay Online
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They can provide, but evidently they WON'T provide.
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#2279796 - 01/13/23 02:39 PM Re: Applicant doesn't provide DOB - code? Help! Compliance
raitchjay Online
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I'm not sure how things went down with the applicant, but if so early in the process an applicant won't even give their date of birth ("nah, nevermind"), i'd proceed with the other applicant. So yes, i misspoke above....i believe you have a HMDA reportable application.....with one applicant.

ETA: i don't see this much difference than if i walked into a bank and said i want a loan and i replied "i don't want to give you my name". The bank needs my name to process the application, just like they need my date of birth. I won't give it. I'm not treating that as an incomplete application....it was a quick inquiry that ended when i wouldn't give my name.
Last edited by raitchjay; 01/13/23 02:59 PM.
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#2279797 - 01/13/23 03:00 PM Re: Applicant doesn't provide DOB - code? Help! Compliance
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Just to shed more light, the "application" was withdrawn relatively quickly. I also received and updated response from the pertinent LOB that stated the following:

"The manager reviewed this loan this morning. She said it isn’t HMDA reportable because it was a prequalification that the borrower withdrew. Notes & date excluded from HMDA have been updated in the LOS."

So to your earlier point, they believe they didn't have all elements of an application. Your thoughts?

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#2279799 - 01/13/23 03:06 PM Re: Applicant doesn't provide DOB - code? Help! Compliance
raitchjay Online
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Did they have a subject property address or no?
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#2279800 - 01/13/23 03:07 PM Re: Applicant doesn't provide DOB - code? Help! Compliance
rlcarey Online
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Galveston, TX
It always comes down your requirements for an application. But if this was just a pre-qual - what difference does it make unless you think you denied the application. It would not be reportable regardless.
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#2279802 - 01/13/23 03:18 PM Re: Applicant doesn't provide DOB - code? raitchjay
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Yes, there was an address that I noted.

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#2279803 - 01/13/23 03:22 PM Re: Applicant doesn't provide DOB - code? Help! Compliance
raitchjay Online
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Can't be a prequal if there was an identified subject property.
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#2279807 - 01/13/23 03:40 PM Re: Applicant doesn't provide DOB - code? Help! Compliance
rlcarey Online
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Galveston, TX
Oh - good catch raitchjay - I now see where you were going with that.
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#2279810 - 01/13/23 03:46 PM Re: Applicant doesn't provide DOB - code? rlcarey
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Thank you both for your feedback. The LOB has now corrected their stance accordingly, and it appears this will now be resolved.

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