Deceased Applicant - HMDA Reporting?

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Question:

Our customer was to refinance his consumer loan which was secured by his home. During the three day rescission period, he died. What is the correct HMDA reporting/non-reporting procedure for this situation?

Answer:

If you are backing this loan off the system, report it as an approved, but not accepted. If you are leaving it on the system and will be settling it through the estate or insurance proceeds, report it as an origination.

First published on BankersOnline.com 2/25/08