Posted By: Likes to Comply
Reporting Loan Term and Introductory Rate - 10/29/21 05:36 PM
We have a withdrawn application in which the applicant initially applied for a loan for 10 years at 4.50% fixed to purchase a primary residence. The Loan Estimate was given to the borrower for this product. After a “draft†cash flow was prepared, it was determined that the borrowers DTI would be too high. An Adverse Action with Counteroffer was given verbally and mailed offering a 30 year 7/1 ARM loan. The borrower accepted the counteroffer. No new Loan Estimate was given due to the fact that no tolerances would need to be re-set. Days later, before a final credit decision could be made, the applicant withdrew the application.
Do we report the loan term and and introductory rate based on the agreed upon counteroffer, since the accepting of a counteroffer is like a "reset" to the loan request? We feel this is reported as a withdrawn application.
Thanks in advance.
Do we report the loan term and and introductory rate based on the agreed upon counteroffer, since the accepting of a counteroffer is like a "reset" to the loan request? We feel this is reported as a withdrawn application.
Thanks in advance.