For HMDA reporting purposes, how should a lender classify a loan application that was withdrawn by the applicant after the lender requested additional documentation?
Correct Answer
C) Application withdrawn by applicant
Under Regulation C, when an applicant voluntarily withdraws an application, it should be reported as 'Application withdrawn by applicant' regardless of the circumstances leading to the withdrawal, including requests for additional documentation.
Why This Is the Correct Answer
Under Regulation C, when an applicant voluntarily withdraws an application, it should be reported as 'Application withdrawn by applicant' regardless of the circumstances leading to the withdrawal, including requests for additional documentation.
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A lender discovers that flood insurance is required for a property after the Closing Disclosure was issued, adding $1,200 annually to the borrower's costs. The borrower objects to the additional cost. What is the lender's obligation?
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