Is it necessary to have the lender sign the original Universal Residential Loan Application (URLA - 1003)?
If we have a customer complete a consumer loan application for a home equity loan and they state the purpose is to finance business, does this then become a commercial loan?
Regarding HMDA reporting of government monitoring information for a co-applicant received on a separate loan application. Commonly, when unrelated borrowers apply for a mortgage loan, they fill out separate 1003 loan applications. Also commonly, most mortgage lending institutions and their lending systems treat the two applications as a single "loan". HMDA reporting is then done on a "loan" level. In this case, would the second applicant be considered a "co-borrower" and would their government monitoring information be reportable to HMDA under one (the same) "loan"?
When should a 1003 loan application be signed by the loan officer (the "interviewer") in the case of mail or telephone applications? Some of our staff says at the time the loan officer sends the application to the applicant, others say at the time the signed application is received back from the applicant. What is your opinion? What do the regulations say?
If a bank declines a loan application because the applicant has exercised his right to file for bankruptcy would this be considered a violation of Reg B?
Can you help me understand the difference between prequalify and preapprove for HMDA purposes?
Our loan officers frequently do not get a signed loan application on commercial loans. Do you know of any risk involved in not having one?
A mortgage company has approached our bank wanting to pay a specific employee a referral fee, if we would forward real estate loan applications we have turned down to them. I do not see how this is a legal process given Section 8 of RESPA's prohibition of referral fees. The only way I can see it would be legal, is if forwarding the application to the mortgage company would not be defined as a settlement service. I think it would be.
When selecting the "action taken" for a HMDA reportable loan, we're in a debate, when a loan application has received conditional approval, meaning the credit approval has been done by using the credit history, debt ratios, etc., but the customer does not provide proof of insurance for the residence being taken as collateral. The loan doesn't go to closing. Do we consider this "approved not taken", as the additional "conditions" we are waiting to have satisfied are similar to those described in Appendix I - Staff Commentary? i.e. "Action taken—conditional approvals". If an institution issues a loan approval, subject to the applicant's meeting underwriting conditions, (other than customary loan commitment or loan-closing conditions, such as a clear-title requirement or an acceptable property survey) and the applicant does not meet them, the institution reports them action taken as a denial.