Intent To Proceed

Posted By: Shih_Tzu_Lvr

Intent To Proceed - 10/07/20 03:36 PM

If an applicant applies, but does not provide intent or return any disclosures, but returns qualifying documents (income, assets, etc.). Do you provide a credit decision or is the file closed because of lack of intent?
Posted By: rlcarey

Re: Intent To Proceed - 10/07/20 04:26 PM

I am confused? They are providing you with qualifying documents without an intent to proceed? Is your MLO not talking to them?
Posted By: Gertie

Re: Intent To Proceed - 10/07/20 05:08 PM

I wouldn't consider an applicant providing qualifying documents as an intent to proceed for regulatory requirements. https://www.consumerfinance.gov/pol...ions/1026/Interp-19/#19-e-2-i-A-Interp-1

2. Intent to proceed. Section 1026.19(e)(2)(i)(A) provides that a consumer may indicate an intent to proceed with a transaction in any manner the consumer chooses, unless a particular manner of communication is required by the creditor. The creditor must document this communication to satisfy the requirements of § 1026.25. For example, oral communication in person immediately upon delivery of the disclosures required by § 1026.19(e)(1)(i) is sufficiently indicative of intent. Oral communication over the phone, written communication via email, or signing a pre-printed form are also sufficiently indicative of intent if such actions occur after receipt of the disclosures required by § 1026.19(e)(1)(i). However, a consumer's silence is not indicative of intent because it cannot be documented to satisfy the requirements of § 1026.25.
Posted By: Shih_Tzu_Lvr

Re: Intent To Proceed - 10/07/20 06:07 PM

I cannot comment on if they are speaking with the borrower. I assume they are, I know that with our disclosures comes a general checklist of items needed, and the consumer may have used that to send the items along.

It is our procedure to accept intent in writing, which is in their disclosure package. We don't generally accept intent verbally.

But the qualifying documents are in file, no written intent or signature on any initial disclosures.

To me the file is dead, no credit decision is made because intent wasn't received.
Posted By: Shih_Tzu_Lvr

Re: Intent To Proceed - 10/07/20 06:13 PM

My concern is that we have sufficient documentation in file to make a credit decision, but no intent to proceed.
Posted By: Dan Persfull

Re: Intent To Proceed - 10/07/20 07:00 PM

Has anyone thought about picking of the telephone and calling them to find out what their intent is (that's something I would think the MLO would have done as soon as receiving the documents)? If they sent the verification documents after reviewing the disclosures I would think it's pretty clear they intend to proceed, but you do need to document that intent.
Posted By: Shih_Tzu_Lvr

Re: Intent To Proceed - 10/08/20 12:40 PM

Not disagreeing with you, however that is not he "process' that is in place right now.
Posted By: rlcarey

Re: Intent To Proceed - 10/08/20 12:56 PM

Then basically your process is broken which causes you to have to deal with situations like this.