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#999629 - 07/18/08 09:31 PM Application Yet?
KTMiteComply Offline
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only if I want to....
I have an applicant in front of me and they know they have a contract they have signed today on 123 street, however the seller doesn't sign until 10 days later because of other issues. Mr. Applicant wants me to run figures and so forth based on what he already knows on this home. Does the clock for disclosures start today or is it really a TBD address until the Sellers actually signs the contract?

Thanks!
KT
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#999696 - 07/18/08 10:14 PM Re: Application Yet? KTMiteComply
bls Offline
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If you are talking about RESPA, the question is: has the applicant provided you with an application. To be an application for RESPA, it must be written, provide some financial information, and identify a specific property. It sounds like a specific property is identified, but has a written request, along with some financial information been provided?

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#999777 - 07/19/08 01:40 AM Re: Application Yet? bls
Dan Persfull Offline
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Kaytee, based on your post it is my opinion you have an application subject to RESPA. The applicant has identified the property, and if you are looking at an "application in front of you" then I have to assume you have a written application.
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#1000196 - 07/21/08 02:09 PM Re: Application Yet? Dan Persfull
KTMiteComply Offline
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Quote:
The applicant has identified the property


Dan, I am also in agreement, however the LO states that they didn't actually have a complete contract on the property yet, therefore it wasn't an application. I on the other hand believe that b/c the LO had knowledge of the property address b/c the customer had already signed the contract on that specific day as well as we pulled credit on that specific day...well we have an application with an address. It doesn't matter that the seller hadn't finalized (at this point), to us we have a property address from the customer...therefore an application. Am I correct on my thinking?

Quote:
it must be written, provide some financial information, and identify a specific property.


Blskms - I'm not 100% sure if I am in total agreement with that statement in whole, or maybe I just don't understand it. I thought the term application means an oral or written request for credit that is made in accordance with procedures established by a creditor for the type of credit requested.

I do appreciate both of ya'lls help! Thanks so much!
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#1000241 - 07/21/08 02:34 PM Re: Application Yet? KTMiteComply
Dan Persfull Offline
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Bloomington, IN
A signed "purchase agreement" has nothing to do with an identified property or a submission of an application. If the borrower had come to you for a pre-approval request identifying this property your early disclosures would have kicked in. No where in the definition of an application in 3500.2 does it mention a signed purchase agreement or contract.

Application means the submission of a borrower's financial information in anticipation of a credit decision, whether written or computer-generated, relating to a federally related mortgage loan. If the submission does not state or identify a specific property, the submission is an application for a pre-qualification and not an application for a federally related mortgage loan under this part. The subsequent addition of an identified property to the submission converts the submission to an application for a federally related mortgage loan.


Your LO cannot dispute this definition. The submission identified a property.
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#1000779 - 07/21/08 06:33 PM Re: Application Yet? Dan Persfull
David Dickinson Offline
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Central City, NE
FWIW, I agree you have an application.
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#1001511 - 07/22/08 02:13 PM Re: Application Yet? David Dickinson
RR Joker Offline
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and so do I!
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#1001553 - 07/22/08 02:30 PM Re: Application Yet? RR Joker
KTMiteComply Offline
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only if I want to....
Thanks EVERYBODY I feel so much better!!! I "almost" feel like my brain cells have actually RETAINED something from all these training sessions for once!!!! LOL! It only took 10 TIMES!!!
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#1001634 - 07/22/08 03:01 PM Re: Application Yet? KTMiteComply
David Dickinson Offline
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Central City, NE
kaytee: Your loan officers would benefit greatly from a webinar on "Applicants and Applications". Info can be found in the BOL Banker Store:
http://www.bankersonline.com/bankerstore/index.php?main_page=product_info&products_id=1103

Many loan officers don't fully understand these topics, yet they are the foundation of all other regulations and a misunderstanding can lead to serious Reg B issues.
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#1001676 - 07/22/08 03:24 PM Re: Application Yet? David Dickinson
KTMiteComply Offline
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only if I want to....
Quote:
Many loan officers don't fully understand these topics, yet they are the foundation of all other regulations and a misunderstanding can lead to serious Reg B issues.


Thanks David so much...and you are so very right! Here at our place, we who are trying to do the compliance end are constantly running into this issue all the time and it can become sometimes quite difficult trying to explain these issues to the LO AND their importance! I did your 10 min listen session and it was great! I will pass this along to our compliance officer!! Thanks again...and I hope your cold is better!
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