Answer:
No, it's approved but not accepted. See the Q&A on the FFIEC's web site under the Action Taken section.
First published on BankersOnline.com 1/2/07
Application Withdrawn if Documents are Signed?
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Question:
Our borrower applied for a home improvement loan, disclosures were mailed and the lender approved the loan without a title search. After review, the senior lender decided that documents could be typed and the borrower could sign the documents but we would not fund until a title search was completed. After receiving the title search and finding several liens ahead of ours, the senior lender decided that we would not fund until the liens were cleared. In the mean time, the borrower has decided they do not want the loan any longer. The problem is that the documents are signed, including the notice of election not to cancel. Can I still consider this a withdrawn application?
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