Hey - no problem. I appreciate you posting your responses from HUD as well and appreciate BOL for providing us a forum to do so.

I think we are all in the same boat and my only hope now is that regulators take it easy on us during the first round of exams!

FYI - local article this weekend on fee worksheets (all tied into PreQual)
http://www.tampabay.com/features/homeandgarden/article1065588.ece

It is perfectly valid in HUD's opinion to require a full completed 1003. While this may not require a signature, certainly you can collect the baseline 6 pieces of information without triggering a GFE. At least, according to Ivy Jackson, the director of HUD’s Office on RESPA enforcement. See the following link: http://files.ots.treas.gov/4830008.pdf

The following is in the new 1/28/10 RESPA FAQs:

33) Q: Can loan originators request verification documents or charge fees prior to issuing a prequalification or preapproval?
A: No. In order to prevent over burdensome documentation demands on mortgage applicants, and to facilitate shopping by borrowers, the final rule specifically prohibits the loan originator from requiring an applicant, as a condition for providing a GFE, to submit supplemental documentation to verify the information provided by the applicant on the application. Loan originators, however, can require applicants to provide such verification information after the GFE has been provided, in order to complete final underwriting. In addition, the rule does not bar a loan originator from using its own sources before issuing a GFE to independently verify the information provided by the applicant.
Similarly, HUD has long supported a public policy goal of creating a circumstance where consumers can shop for a mortgage loan among loan originators without paying significant upfront fees that impede shopping. To this end, and consistent with the Federal Reserve Board’s recently issued revised regulations limiting the fees that a consumer may be charged for the delivery of TILA disclosures, loan originators may not charge consumers anything more than the cost of a credit report prior to issuing a GFE.

"the final rule specifically prohibits the loan originator from requiring an applicant, as a condition for providing a GFE, to submit supplemental documentation to verify the information provided by the applicant on the application."

It still doesn't (IMHO) answer the question concerning the fact that you may not have an application under RESPA in a prequal or preapproval situation, which would include property address and an estimate of value of the property.

I agree with Randy's comment. Until you have enough information to qualify as an application as defined in 3500.2 you do not have an application covered by RESPA, therefore until HUD revises the definition of an application pre-approvals/qualifications are not covered by RESPA. I addressed this in a email to HUD. You can see my comments here along with their brief reply.

http://www.bankersonline.com/forum/ubbthreads.php?ubb=showflat&Number=1331140#Post1331140

I agree with Randy and Dan. HUD does not regulate non-RESPA situations.

This is where the "big banks" and the ABA, with their throngs of attorneys, can help the industry by pushing issues like this for clarification.