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#286882 - 12/09/04 06:28 PM Notice to Home Loan Applicant
mpliska Offline
New Poster
Joined: Nov 2004
Posts: 7
This form asks for the applicant's signature. When we send it them, do we request that they sign it and then send it back?

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#286883 - 12/09/04 06:56 PM Re: Notice to Home Loan Applicant
Cryin&Complyin Offline
100 Club
Cryin&Complyin
Joined: Jun 2004
Posts: 106
The Deep South
Quote:

This form asks for the applicant's signature. When we send it them, do we request that they sign it and then send it back?



We had the same issue. What we are suggesting to our banks is that when the notice is mailed, to keep a copy with the loan file with a notation that it was mailed, the date mailed, and the lender's initials.

If the loan is subsequently approved, the bank may ask the customer to sign the acknowledgement at loan closing. However, if the loan is denied or withdrawn, you're probably not going to be able to get the customer to sign an acknowledgement. But you will have recorded the delivery time and method in your loan file.

And the signature is not "technically" required. But most banks prefer keeping an acknowledged copy in their loan file whenever possible to show the examiners.
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[color:"teal"]My opinion is my own, often to the dismay of my employer![/color]

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#286884 - 12/13/04 08:54 PM Re: Notice to Home Loan Applicant
upstateNY Offline
Platinum Poster
Joined: Apr 2003
Posts: 933
New York State
Quote:

And the signature is not "technically" required. But most banks prefer keeping an acknowledged copy in their loan file whenever possible to show the examiners.



Just be careful that you don't shoot yourself in the foot. We started out with a signature. But very quickly realized that we are not going to get it for rejected applications and often not for withdrawn applications. We subsequently removed the signature lines. As soon as you add an unrequired signature line to a document, auditors and examiners will ask you why its not there and generally cite its absence as an exception to your own procedures. Who needs the aggravation?

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#286885 - 12/13/04 09:37 PM Re: Notice to Home Loan Applicant
Peridot Offline
100 Club
Joined: Jan 2004
Posts: 121
Rural Minnesota
I agree, when you include a signature line when not needed, you open yourself to criticism for not being consistent in applying the procedure to obtain a signed acknowledgement.
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#286886 - 12/15/04 04:38 PM Re: Notice to Home Loan Applicant
Chris Kilian Offline
Junior Member
Joined: Nov 2004
Posts: 47
Western Region
Here is a response to this very question I received from FDIC just yesterday via e-mail. We are a Calif bank under FDIC.

"No, no signature or burden of proof. We'll be examining this by looking
at policies, practices, etc., just like any other disclosure. It's up
to each bank to decide how best to set up their program."

-Chris

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