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#632512 - 11/01/06 10:31 PM Application Required?
Wiqit Offline
Member
Joined: Dec 2004
Posts: 56
Some of our loan officers are originating a new loan to an existing loan account customer and they are not obtaining an application for the new loan.

Is this acceptable?

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Lending Compliance
#632513 - 11/01/06 10:49 PM Re: Application Required?
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
There is no regulatory requirement to have a written application unless the application is subject to 12 CFR 202.13.
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#632514 - 11/08/06 12:23 AM Re: Application Required?
river girl Offline
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Joined: Nov 2004
Posts: 1,005
We do most of our mortgage refinance lending through the call center. Even if the member comes into the branch, the lender takes all of the information verbally and inputs it directly into the computer. The member only signs documents at closing. Even then the documents are on the computer screen and the member just signs the signature pad.
Are we in violation of 202.13(a) A creditor must take written applications for credit related to the purchase or refinancing of a principal residence secured by the residence?
Does the entire application have to be handwritten by the borrower? Is this to help with uncovering mortgage loan fraud?

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#632515 - 11/09/06 04:01 AM Re: Application Required?
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
No, you are fine. The Commentary to ยง202.4(c) #1 states:
"Model application forms are provided in Appendix B to the regulation, although use of a printed form of any kind is not required. A creditor will satisfy the requirement by writing down the information that it normally considers in making a credit decision. The creditor may complete the application on behalf of an applicant and need not require the applicant to sign the application."

However, I'm interested in how you collect Gov't Monitoring Info.
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#632516 - 11/14/06 09:04 PM Re: Application Required?
river girl Offline
Diamond Poster
Joined: Nov 2004
Posts: 1,005
The lenders verbally read the disclosure and then ask the borrower to choose one or more of the following or choose they do not wish to respond for sex, ethnicity, and race.
Is this ok?

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#632517 - 11/14/06 09:21 PM Re: Application Required?
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
Yes.
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#640090 - 11/20/06 07:03 PM more than one application required? Dan Persfull
Truffle Royale Offline

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We're about to start offering 80/20 financing.
Quesion: Anyone have a cheat sheet or info about how they are handling these?

Specifically, can I use the same application for both the loans? Because this is a 'boxed set' of loans (in this program, neither exists without the other) it seems best for me to KISS and have one application and possibly one file with a and b extensions on the number.

I do need to do seperate TIL/GFE for each and both are HMDA reportable seperately as purchases, correct?

Thanks for the help.

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#640591 - 11/21/06 04:47 PM Application(s) help please! Truffle Royale
Truffle Royale Offline

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bump - anyone working with investors on 80/20 mortgage deals?

Any help would be greatly appreciated. I need to make sure I'm thinking of everything for these.

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#640611 - 11/21/06 05:24 PM Re: Application(s) help please! Truffle Royale
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
We do very few of these. We copy the original application and make modifications to the copy for term, amount, purpose, etc. as needed to fit the terms of the second loan. We have the applicant(s) initial the changes and re-sign the application.

However, you mentioned investors, they may have different requirements and I would advise talking to the appropriate reps to find out their requirements.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#640634 - 11/21/06 05:48 PM Re: Application(s) help please! Dan Persfull
Truffle Royale Offline

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Thanks, Dan.
Am I right about the GFE/TIL and HMDA too?
Wish I could say I owe you one but, unless it's a beer, I doubt I'd ever be able to repay the help you continue to give me!

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#640640 - 11/21/06 05:54 PM Re: Application(s) help please! Truffle Royale
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
Originally Posted By: Truffle Royale

Am I right about the GFE/TIL and HMDA too?


Yes you are correct.

And you're welcome. I think I got ran over by a beer truck last night, so no payment necessary at this time.
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The opinions expressed are mine and they are not to be taken as legal advice.

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