Counter Offer- Higher Loan Amount

Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
  • #342143

    I’m looking for some clarification on counter-offers. It is my understanding that a counter-offer occurs any time a Bank offers an applicant something different from what the they originally requested. We had a question come up if we offered a higher loan amount than what was requested, if that is still a counter offer.

    For example, if a client asks for $100,000 which is 90% of the estimated value of the home, and when the appraisal comes in higher than we expected, we offer $125,000 (for LTV reasons) (90% of the new value). The client wants the $125,000. Is that still a counter offer?


    Classification is not dependent on the amount being lower than requested by the borrower. Anytime you would change the request up or down it would be considered a counteroffer because it is not what they requested at the time of application.

    specifically HMDA Comments for 1003.4 Paragraph 4(a)(6) 9. Action taken – Counteroffers states “If a financial institution makes a counteroffer to lend on terms different from the applicant’s initial request (for example, for a shorter loan maturity, with a different interest rate, or in a different amount)”

    NOTICE: This email message, including any attachments, is intended only for the addressee, and may contain confidential and privileged information either as protected work product or confidential client information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, do not read, copy, retain, or disseminate this message or any attachment, and please contact the sender by reply e-mail or at 888.760.5646 and destroy all copies of the original message and attachments. Neither the transmission of this message or any attachment, nor any error in transmission or misdelivery shall constitute waiver of any applicable legal privilege.


Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.