A lender receives a pre-application inquiry from a borrower who provides their name, income, and property address but does not submit a formal application. Six months later, the same borrower submits a complete application. How should this be reported under HMDA?
Correct Answer
D) Report only the formal application since the inquiry was incomplete
Under Regulation C, only applications that result in a credit decision or are withdrawn by the applicant are reportable. Pre-application inquiries that do not result in an application are not reported separately. The formal application is the reportable event.
Why This Is the Correct Answer
Under Regulation C, only applications that result in a credit decision or are withdrawn by the applicant are reportable. Pre-application inquiries that do not result in an application are not reported separately. The formal application is the reportable event.
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