Steps to Cancelling a File

Transcription

1 Steps to Cancelling a File Files cancelled BEFORE underwriting need the following items completed: Cancellation Checklist completed by branch Statement of Denial completed by branch Files cancelled (or declined) AFTER underwriting need the following items completed: Statement of Denial completed by Underwriter Decline Checklist completed by both Underwriter and Processor (each have designated portions) Timeline of Delivery: Statement of Denial (the form we use for the Final Action Notice) delivered to the borrower within: 3 business days from the GFE application date if initial disclosures (including GFE) have not been delivered. 30 days after receiving a completed application (GFE application date triggered). If the application is incomplete, a request for missing information must be communicated to the borrower within: 30 days after receiving an application that is incomplete with the following: o Request for documentation to complete application, items required for loan approval, or conditions of counter offer, or adverse action. (must be documented in efolder and/or conversation log) If the borrower does not respond and/or provide the requested items within 30 days of the request for missing information, a Notice of Incompleteness action notice must be sent. Note: The complete Cancellation and Decline Procedure can be found on SharePoint > Libraries > Compliance and Disclosures > Compliance Primary > Adverse Action (Declines, Withdrawal, Rescission) > Cancellation and Decline Procedure Retail. 1 P a g e

2 To cancel a file, complete the following steps: 1. Ensure that the Government Monitoring and Information Provided By sections are complete on pg3/ Enter detailed reason for cancellation in the Conversation Log (in Tools tab) 3. Check ALL Credit Score for Disclosure Notice boxes on the FACT Act Disclosure (in Forms tab) Important Note: Only the mid score box for each borrower is checked on the Fact Act Disclosure that is included with initial disclosures; When cancelling a file, the remaining boxes for each borrower must be checked so that ALL scores appear on the Statement of Denial 2 P a g e

3 4. Complete the Statement of Denial (in Forms tab) Denial Information - Enter the date the adverse action (cancellation or decline) occurred. Identify who completed the Statement of Denial Identify the date the statement was delivered to the borrower. Description of Account, Transaction or Requested Credit Enter a description of loan program for which the borrower applied. Description of Action Taken Enter the HMDA Status (File closed for incompleteness, Application withdrawn, Application denied) 3 P a g e

4 Principal Reason(s) for Credit Denial Identify all reasons for the adverse action. Important Note: The following reasons may not be the only reason for the adverse action: Credit Application Incomplete We do not grant credit to any applicant on Identify specifically what was incomplete or not provided or reason credit could not be provided. Disclosure of use of information obtained from an outside source. Check the appropriate box if the credit report and/or the credit score are wholly or partly the reason for the cancellation or decline. 5. Print, sign and upload the Statement of Denial to the Statement of Denial placeholder in the efolder. Important Note: The statement of Denial must be completed and signed by the Underwriter if the loan was submitted to underwriting or by the Loan Officer if the file was cancelled before underwriting. 4 P a g e

5 IF THE FILE HAS NOT BEEN SUBMITTED TO UNDERWRITING COMPLETE STEP 6 6. Complete the Cancellation Checklist (in Forms tab). As the Cancellation Criteria questions are answered, the Required Documentation fields will become active. You only need to satisfy the required documents fields that are unlocked. (not grayed out) Select Done in the dropdown boxes to indicate the Required Action is completed. Once the checklist is complete and all Required Documentation has been uploaded to the appropriate placeholders in the efolder, certify the file is ready to be cancelled. 5 P a g e

6 IF THE FILE HAS BEEN SUBMITTED TO UNDERWRITING, COMPLETE STEP 7 7. Complete the Decline Checklist (in Forms tab). The Underwriter will complete and certify the top portion of the checklist. The Processor will complete and certify the bottom portion of the checklist 8. Move the loan file to the Bay Cancel-Decline Ready for Review folder. In your pipeline, right click on the loan, select the Move to Folder > Bay Cancel- Decline Ready for Review folder. The Reg B team will review the loan and update the current status to ensure accurate reporting. The branch must not update the current status on cancelled and declined loans on the Borrower Summary Origination screen, as this is done by Compliance, after they have completed their review. 6 P a g e