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Definition of Application Clarification

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  • #33396
    ltaylo1960
    Participant

    We are a small community bank thinking about adding an on line URLA to our website, and I’m concerned about LE requirements based on receipt of these applications. Based on our understanding of your training in 2015, we’ve always avoided getting social security numbers if we didn’t want to trigger the submission of an application in the process of early conversations/prequalifications with potential borrowers. Also based on our understanding of your training in 2015, we did NOT consider lack of a definite property address as a way of avoiding the submission of an application and avoiding issuance of an LE. Therefore, we have felt compelled to issue LE’s when we do NOT have a definite property address (and we have the other five parts). We have gotten some guidance that says we do not have to provide an LE if we don’t have the property address, but we are reluctant because that has never been our practice up to this point in time. We wanted to come back to the source that we based that practice on, and perhaps we misunderstood in 2015. Bottom line: my question is, do we have to issue early disclosures to on-line applications that do NOT have a definite property address?

    #33426
    Brent V
    Keymaster

    Thanks for attending our TRID program back in 2015. There have literally been thousands of pages of revisions since then. It may be time to attend a TRID update program.

    Intentionally delaying a disclosure because you don’t accept information from the applicant is both a TRID violation and a Unfair, Deceptive or Abusive Act or Practice.

    You do not have an application until the borrower submits all six items. If the borrower gives you a social security number, orally or in writing, you have that item even though you may not want it.

    If you have the other five items, but lack the address of the property, then you do not have an application. This was covered in FAQs released by the CFPB in 2019

    We currently half way through our Total TRID Training four-part webinar series. Parts 1 and 2 are available via recording with the purchase of the bundle https://www.jackscomplianceresource.com/event-registration/?ee=487

    • This reply was modified 2 weeks, 3 days ago by Brent V.
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