Approved, Not Accepred or Denial

Posted By: Many Hats

Approved, Not Accepred or Denial - 10/09/12 03:56 PM

Application was made for const/perm loan for a primary residence. The Bank made a counter offer. The applicant did not accept and went with another lender.

For HMDA, the action taken is a denial, correct?

And, the action taken date is the date in which the applicant contacted the bank and indicated they did not accept the counter offer, right?
Posted By: TMatt87

Re: Approved, Not Accepred or Denial - 10/09/12 04:02 PM

Correct on both.
Posted By: raitchjay

Re: Approved, Not Accepred or Denial - 10/09/12 04:21 PM

I think your action taken date would be whatever the date of your denial is, not the date they contact you and say they don't want to accept your counteroffer.
Posted By: TMatt87

Re: Approved, Not Accepred or Denial - 10/09/12 04:30 PM

You're right raitchjay, I forgot this was a counter-offer situation.
Posted By: Many Hats

Re: Approved, Not Accepred or Denial - 10/09/12 04:51 PM

So, then if the applicant calls on 10/5 to say they do not accept the counter offer and the bank notates the file regarding this and closes it on 10/9, the action taken date is 10/9?

And, on a related note, since they aren't actually denying (it was a counter offer not accepted), an AAN is not necessary?
Posted By: Truffle Royale

Re: Approved, Not Accepred or Denial - 10/09/12 04:53 PM

What date did the borrower not accept? That's your action taken date, not when the bank gets around to closing the file.
Posted By: raitchjay

Re: Approved, Not Accepred or Denial - 10/09/12 04:59 PM

A counteroffer not accepted IS a denial (you wouldn't grant credit on the terms applied for). Your action taken date is when you issued the denial/counteroffer and yes, you would need an AAN.
Posted By: TMatt87

Re: Approved, Not Accepred or Denial - 10/09/12 04:59 PM

Originally Posted By: TMatt87
You're right raitchjay, I forgot this was a counter-offer situation.


I think I was right the first time. The action date will be the date that the applicant withdrew.

Originally Posted By: Many Hats
So, then if the applicant calls on 10/5 to say they do not accept the counter offer and the bank notates the file regarding this and closes it on 10/9, the action taken date is 10/9?

And, on a related note, since they aren't actually denying (it was a counter offer not accepted), an AAN is not necessary?


You're action date would be 10/5 and you would have to send out an AAN.
Posted By: raitchjay

Re: Approved, Not Accepred or Denial - 10/09/12 05:00 PM

The applicant didn't withdraw. They didn't accept the counteroffer which is a denial.
Posted By: raitchjay

Re: Approved, Not Accepred or Denial - 10/09/12 05:03 PM

Anything short of the loan closing in your bank's name after making a counteroffer is a denial. The applicant can't "withdraw" after you've denied credit on the terms applied for and instead make a counteroffer.
Posted By: TMatt87

Re: Approved, Not Accepred or Denial - 10/09/12 05:16 PM

You're correct. I used the wrong verbiage.
Posted By: Many Hats

Re: Approved, Not Accepred or Denial - 10/09/12 05:53 PM

Okay...so now I am confused....bottom line: If the applicant did not accept the counter offer (which was issued on 9/20), the HMDA action taken date would be 10/5 (the date the applicant did not accept the offer)???

Or, is the action taken date 10/9 (the date the bank closed the file)??

And, should the bank have issued a final denial notice on 10/9?
Posted By: hmdagal

Re: Approved, Not Accepred or Denial - 10/09/12 05:55 PM

If the bank issued a combined counter/denial notice on 9/20 the HMDA action taken date would be 9/20. If the bank did not use the combined notice, you would need to send an AAN now and the action taken date would be the date on the AAN.

And you'll report the action type as denied and the loan amount as the amount originally applied for (not the amount of the counter).
Posted By: Many Hats

Re: Approved, Not Accepred or Denial - 10/09/12 06:01 PM

The counter-offer did not list reasons why the request wasn't granted as applied...it just had the counter-offer details. So, essentially, they should have issued a denial notice specifying the reasons for denial.
Posted By: hmdagal

Re: Approved, Not Accepred or Denial - 10/09/12 06:40 PM

Correct.