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#2254241 - 05/21/21 10:38 PM No collateral
banker-12 Offline
Diamond Poster
Joined: May 2007
Posts: 1,240
An applicant is requesting a loan to purchase a vacant lot but wants it unsecured. The loan officer requested collateral. Customer did not call back; has not responded. The loan officer withdrew the application. is it okay that we treat this as a withdrawn? We can't deny it for "no collateral" because we do make unsecured loans. There are no other reason to deny. It's a commercial loan request.

Thank You.

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Lending Compliance
#2254244 - 05/22/21 01:31 PM Re: No collateral banker-12
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
They denied the application plain and simple. This application needs a second review.
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#2254251 - 05/22/21 04:22 PM Re: No collateral banker-12
Rocky P Online
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Joined: Jun 2003
Posts: 7,650
Florida
A customer can withdraw an application, not the bank. It was denied (what Randy said).
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#2254253 - 05/22/21 06:53 PM Re: No collateral banker-12
Andy_Z Offline
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Andy_Z
Joined: Oct 2000
Posts: 27,748
On the Net
These are the things you begin to look at when you audit. If an audit was to reveal minority (as an example) applicants were "withdrawn" by the lender instead of being denied, it would trigger a broader review and potential fair lending action.

Remedial actions - correct the notice if need be and train staff.
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#2254254 - 05/22/21 07:27 PM Re: No collateral banker-12
Rocky P Online
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Joined: Jun 2003
Posts: 7,650
Florida
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