What constitutes a mortgage application date?
That is not as easy a question to answer as one might think. I'm
not a lawyer, but I'm not sure even most lawyers, or courts, for
that matter, would agree on an answer to that question: Lenders
have a fair amount of discretion as to what constitutes an
application, as opposed to a prequalification. But a written,
signed and dated application is not always required to consider
that a formal application exists. In fact, if a borrower is denied
credit, even though there is no written application, the FDIC still
considers that an application existed. One part of Truth in Lending
law, stating when initial disclosures are to be made, refers to
written applications. However, it is clear from other parts of
Regulation Z (Part B); the Home Mortgage Disclosure Act and ECOA
(Equal Credit Opportunity Act) that the federal government
considers an application to exist at the time that the lender has
enough documentation to make a credit decision, whether or not a
written application exists. Obviously, there is ambiguity in the
law. But, it is clear that the majority of the law does not require
a paper 1003URLA or other formal application form in order for an
application to exist. So, broadly, the application date could be
considered to be the date that the lender receives the last
document that would allow them to give a "yes" or "no" decision on
a loan request.