Answer:
Answer by Dan Persfull: Sounds like you took an oral application by telephone. In my opinion, the request is reportable based on the information provided.
Answer:
Answer by David Dickinson: The bottom line question is "do you have an application or not?". Having already pulled a credit report is not a necessary indicator that you had an application as you can access a credit report anytime you have "a legitimate need initiated by the consumer. An inquiry can trigger this need.
I don't know how much info you received over the telephone, so it is difficult to say whether you have an application or not. You should refer to the definition of application in Section 203.2(b) and its corresponding commentary. Additionally, refer to the definition of application in Reg B at Section 202.2(f) since HMDA's definition points to Reg B's definition [Section 202.2(f)] for further guidance.
If you did have an application and the applicants won't provide further information, then most likely you will need to send a notice of incompleteness or deny it because the information is incomplete. Either way, you would record this on your HMDA LAR. If you send a notice of incompleteness, you would record it as Action Taken code 5 (File closed for incompleteness). If you deny it because the info is complete, then you would record it as Action Taken code 3 (Application Denied).
If you did not receive an application [per Section 203.2(b) Section 202.2(f)], then you have no HMDA entry.
First published on BankersOnline.com 5/23/05
print
share