[Sandy]

One of our loan officer’s has received a residential loan application that an applicant came in the Bank took home a blank one, completed and brought back in for a pre-qualification of purchasing a home. It was not a complete application because they did not have an address/or house picked out yet. Is the GMI to be collected on a prequalification application? If it is not and the applicants had marked some of the GMI questions before it was brought back into the Bank is it a violation on the loan officer? Also, the application is for 2 applicants. Since it is a prequalification application & not a loan application, is the joint intent signatures required?

[Kimberly Boatwright, CAMS, CRCM]

This question is a bit tricky. It all comes down to definitions. HMDA does not require that prequalifications be reported on the LAR. It does require that HMDA preapprovals be reported. So the first question is does your institution have a HMDA preapproval program? Which means that you collect everything needed to approve the loan, but the property address. That the applicant is provided a preapproval letter, with the amount approved and an expiration date. The only thing that can be outstanding are conditions around a property, that appraises, gets a flood cert and/or insurance etc. If you do not have a HMDA preapproval program and your question is all about a prequalification then there is not a HMDA violation. The other thing that needs to be considered is the comment on having an address. HMDA preapproval programs do not require an address, that is a TRID requirement and definition. You will want to be very careful of using that stipulation in a HMDA transaction.

Joint intent is required to be acknowledged on all joint applications.

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