Application Date for Prequalified Applicant

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Question:

We have a difference of opinion in our office concerning the application date to be used when we have prequalified an applicant who does not have a purchase agreement, then brings one in a month later. I think the application date is the date we receive the purchase agreement and not the date of the pre-qual. Am I correct?

Answer:

It depends.

Reg. B - Pre-qualification requests are not considered applications under Reg. B unless you take adverse action, then you must follow the 202.9 notice requirements. In that case your application date would be the date the pre-qualification request was received.

RESPA - you do not have an application for RESPA purposes until a property has been identified.

HMDA - pre-qualifications are not reportable. However, if you have a qualified pre-approval program then your application date will be the date the pre-approval request was received for HMDA reporting purposes.

First published on BankersOnline.com 1/9/06