Is This What's Called a Pre-Approval?

Answered by:

Question:

90% of our loan originations (TPO and retail) are submitted with credit, contracts/appraisals, verbals, bank statements, etc. and are conditionally approved for items backing up the credit docs and sometimes appraisal; is this considered a pre-approval?

Answer:

I am going to assume you are asking concerning HMDA. If you issue a written commitment that has an expiration and conditions on normal lending requirements - yes.

However, with the 2004 FFIEC software you will have to report the property information as NA. This is to be corrected in 2005 to allow you to report an identified property.

First published on BankersOnline.com 1/23/06