if we approve a loan application, but the customer does not get back to us within 30 days do we have to send any notice or can i just file away as withdrawn? I don't know why i would need to send an adverse action since we are not denying, but 30 days is standing out to me.

You could just send them an adverse action letting them know that if you do not hear from them within 10 days, you are closing their file & assuming they are withdrawing from the application. That is what our bank does, not saying it is right, please let me know if we are wrong. It just seems to cover ourselves.

We just record the fact that we've tried to get in touch with the customer and have not heard back from them and consider the application withdrawn.

My only concern about using the AAN is that, on ours, we only have two options: that the "following information is needed to make a decision" or that we "are unable to approve the requrest." Since we have approved the request, neither of those check boxes makes sense.

The 30 days rule is that you must make a credit decision within 30 days of application. The HDMA Guide to Getting it Right explains the Action Types. Our compliance officer has told us that the only time the bank can assume the applicant withdraws the application is if they do not express intent to proceed by the GFE expiration date. Otherwise the applicant can withdraw the application either verbally or by written notice prior to a credit decision being made.

Web - From what you are saying you approved the loan. If you approved the loan then it's not a withdrawn loan, if they fail to respond to your notification of approval or your commitment letter within the specified time, then it's considered approved and applicant rejects.

TJones - it sounds like in your situation that you have sent a written notice of incompleteness under section 202.9(c)(2) of Regulation B (Equal Credit Opportunity) and the applicant did not respond to your request for additional information within the period of time specified in your notice. Then the file is considered closed for incomplete.

Like Doug, we go a step futher and try to contact the customer to verify they received our notice of approval or request for additional information and see if we can savage the deal but I disagree with him stating the loan can be considered withdrawn (based on the HMDA Action Types).

202.9(e) Withdrawal of approved application. When an applicant submits an application and the parties contemplate that the applicant will inquire about its status, if the creditor approves the application and the applicant has not inquired within 30 days after applying, the creditor may treat the application as withdrawn and need not comply with paragraph (a)(1) of this section.

This however would be considered an approved but not accepted application under HMDA.