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#620005 - 09/29/06 04:33 PM preapproval or not
TOLIE Offline
Junior Member
TOLIE
Joined: Nov 2003
Posts: 41
Michigan
loan officer originated an application for borrowers. The borrowers wanted to purchase a new home (no address) with one mortgage including new home and current residence. Is this a legitimate preapproval?

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Lending Compliance
#620006 - 09/29/06 05:03 PM Re: preapproval or not
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,016
Bloomington, IN
Can't answer that with the limited infomation. Did you fully underwrite the loan and issue a committment letter that follows the outline of 203.2(b)(2)? You may also want to review the HMDA Q&A .
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The opinions expressed are mine and they are not to be taken as legal advice.

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#620007 - 10/01/06 10:49 PM Re: preapproval or not
Lucy Griffin Offline

Diamond Poster
Lucy Griffin
Joined: Nov 2000
Posts: 1,544
In order to meet the HMDA pre-approval test, you have to have a program as well as a credit decision. It doesn't sound like your lender went that far but, as Dan says, the facts are sketchy.

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