Notice of incomplete letter

Our lenders struggle with the non-originated files: denials, incompletes, and withdrawns. We are trying to figure out if there is a way to send a letter with the initial disclosures that informs the borrower they must provide certain verification documents within 30 days or their file will be considered incomplete and no further action will be given. Does anyone have this in practice? Or would it even be allowed?

If after reviewing these disclosures you wish to proceed with the loan request please acknowledge your intent to proceed with the loan request by doing one of the following.

• Contact the below Mortgage Loan Originator at 812-xxx-xxxx to inform them you wish to proceed with the loan request.
• Contact your Mortgage Loan Originator by email at the email address provided on their business card or to their attention at xxxxx@xxxxx.com informing them of your intent to proceed with the loan request.

If we do not hear from you within fifteen (15) business days (excluding Federal holidays and Sundays) from the date of this letter we will assume you have chosen not to proceed with the loan request and no further action will be taken.

We look forward to serving your financing needs.

If you include this above information in the Intent to Proceed notice, does this qualify as a Notice of Incomplete? And would that make our HMDA action taken date 15 business days from the date on the intent to proceed?

We have been using similar language for several years and it was modified to refer to the intent to proceed when TRID came along. It has passed several FDIC exams.

The 15 days is the number of days we chose. You can used 10, 15, 20, 30 or whatever you are comfortable with. Your action taken date will be the letter's expiration date or the date you close the file for incompleteness.