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#1544076 - 05/02/11 04:13 PM HMDA Action
PatMu Offline
New Poster
Joined: May 2011
Posts: 3
I am looking for some guidance on the following question?

Loan Scenario:

First, customer applied for a HMDA reportable refinance loan for a $100,000 although they did not qualify for the requested amount due to the appraised value so they were provided with a counteroffer for $90,000. The customer accepted this counteroffer (they signed the Mortgage Loan Commitment and the Intent to Proceed Form) although the loan did not end up closing. The customer could not provide all of the needed documentation to close the loan so the customer cancelled the loan request at the given time.

How would this loan be reported on HMDA, meaning what Action and what Loan Amount should be reported on the HMDA LAR?

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#1544125 - 05/02/11 05:12 PM Re: HMDA Action PatMu
RR Becca Offline
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RR Becca
Joined: Sep 2004
Posts: 5,249
out of the frying pan...
Do you mean that the LO cancelled the loan request when the time allowed for the customer to meet the conditions expired?

If so, I would say you have a denial. You were unable to provide credit on the original terms requested, and the counter-offer was not accepted (by virtue of not meeting the conditions).
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#1544591 - 05/03/11 01:45 PM Re: HMDA Action RR Becca
PatMu Offline
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Joined: May 2011
Posts: 3
No the LO did not cancell the loan request the customer did because they knew that they could not provide the needed documents for some time.

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#1544596 - 05/03/11 01:49 PM Re: HMDA Action PatMu
RR Becca Offline
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RR Becca
Joined: Sep 2004
Posts: 5,249
out of the frying pan...
I would still say it is a denial. You were unable to approve the original request and the customer (in effect) did not accept the counter offer.
_________________________
You call it ADD. I call it multi-tasking.

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#1544717 - 05/03/11 04:19 PM Re: HMDA Action RR Becca
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
I agree and the loan amount to report will be the original amount requested ($100,000).
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The opinions expressed are mine and they are not to be taken as legal advice.

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