Residential Mortgage Loan Over Phone

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Question:

Once we take a residential mortgage loan application over the phone, we send the 1003 and initial disclosures to the applicant. Would we be prohibited from providing a written notification with the loan package that instructs the applicant to return the documents to us within 14 days or the bank will consider the application to be withdrawn by applicant?

Answer:

Answer by Randy Carey: It would not be withdrawn by the applicant, it would be closed for incompleteness by the bank.

Answer:

Answer by Kathleen Blanchard: The notice must list the documents needed in order to proceed in compliance with Reg B, 1002.9(c)2; if the documents are not provided you would report the file as closed for incompleteness. Without the required notice it would be denied for incompleteness.

First published on BankersOnline.com 8/13/12