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Preapproval request approved but no property identified. How should a lender report a preapproval request it approved if the borrower did not later identify a property to the lender?

April 26, 2017Approved borrower identify later Lender preapproval Property report request

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Preapproval request approved but no property identified. How should a lender report a preapproval request it approved if the borrower did not later identify a property to the lender?

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Reporting of the transaction is optional. If the transaction is reported, the lender uses code ‘8’ (“preapproval request approved but not accepted”) under “type of action” and code ‘1’ (“preapproval was requested”) under “request for preapproval.” See Appendix A, I.A.8. & I.B.1.