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Avoiding verbal conditional approvals

Question: 
Our conditional approvals are verbal and there is often not sufficient information in the file for the staff that prepares the HMDA LAR to know what conditions are outstanding. How can we report accurately in this situation?
Answer: 

A verbal conditional approval can work only if the file is well documented so that anyone working with the file knows exactly what is required to reach a final approval and originate the loan. Also consider how the customer is informed what is needed from them. All parties should be on the same page regarding open conditions to avoid surprises.
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Learn more about Kathleen Blanchard’s webinar Reporting HMDA Action Taken for Conditional Approvals

First published on 05/19/2019

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