We have an application for a home equity loan in which the loan originator neglected to mark down the date he took the phone application nor was the date the Bank received the completed application stamped anywhere on the application. The customers signed and dated the application December 2, 2010.

The early RESPA disclosures were dated November 23, 2010.

What date do we use to determine if the disclosures were mailed out within the three day time frame?

The early disclosures could have been given out in an application packet on November 23. Barring nothing to the contrary 12/2 is your application date.

The application was actually taken on November 19 (it was done in conjuction with a first mortgage). There is nothing in the Home Equity loan file to indicate this.

Do we have some type of violation?

If the application was "taken" as in recieved into your possession what happen on 12/2 that the customer was back in to sign and date?

I don't know. I can't answer that. I am not 100% sure. I want to say the customer called and the application was taken over the phone, then mailed to the customer and he, in turn, signed and dated on the date he actually put his signature on the application.

First I would smack my originator for this...

Then I would check the entry date in your LOS for this account. For us our LOS is allways the de-facto date of application in this type of situation. We have stopped smacking the originators lately because they document dates better now... not perfect, but better.

Failing your LOS having an entry date, I would go ahead and say that the forms were sent correctly and document the app date as the 22nd... notating that the application is not stamped and given the Holiday weekend, a return date of 12/2/10 is acceptable.

Cheers!

Well then I believe the application date is now the date that the application is recieved into your office-November 19. I think you should document what has happen in the file and why it is dated later -- 12/2. Whether you have a violation will depend on what was done, and when, based on the 11/19 date or on the other dates. The simply fact that the application is dated by the customer on 12/2 is explainable by your last comments. But I would document it all in the file.

Thanks so much for your input. But our loan originators don't know the meaning of the word document.

eta: If you think about it logically, when an application that was taken by phone is actually signed can't possibly be the real application date.

Agreed, Truffle, but what date do we use if there is no documentation in teh file to indicate it was taken via phone on the 19th?

A copy of whatever you have in your first mortgage file that documents November 19 as the application date should be adequate documentation for your HELOC too.