Hi All,

I have two questions?

1) If the mortgage company approves a loan, per an approval letter, can the mortgage company then send out an adverse action notice for an incomplete application?

2) Are construction loans subject to RESPA and TILA?

1) I don't understand, how can someone both approve and deny a loan application???

2) Sometimes they are, it depends on whether or not the transaction involve the transfer of property to the first user or if the same creditor is contemplating the permanent financing.

I agree, I do not understand what our mortgage company is doing myself. let me try to explain further.

1) I have a mortgage commitment that tells the customer they are approved with conditions. Later the mortgage company needed more information from the customer. They sent an adverse action notice to the customer marking the box "application not complete, the following information is needed within 30 days or you will have to submit a new application". The customer did not provide the required information in the required time frame. My question is this, did we give the correct adverse action notice reason for denial? If it matters the requested information on the adverse action notice is not on the mortgage loan commitment conditions.

If it matters the requested information on the adverse action notice is not on the mortgage loan commitment conditions.

I would say that it matters greatly and you need to get your legal counsel involved.