TPO: Adverse Loan

Overview

When a loan needs to be adversed, a request must be sent to the LOS to update the loan status and provide a reason for the adverse action. This article provides instructions for adversing a loan.

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Adverse a Loan

The adverse loan function is located in the loan menu: Menu > Actions > Adverse Loan

Note: Adversing a loan is a privilege setting. Users must be granted the following privileges in order to adverse a loan:

• Adverse Loans
• Adverse Reason - Detail

After selecting the Adverse Loan menu option, you will be prompted to select the reason for adversing:

• Application approved but not accepted
• Application denied
• Application withdrawn
• File closed for incompleteness
• Preapproval request denied (preapproval only)
• Preapproval request approved but not accepted (preapproval only)

Depending on the reason selected, you will be prompted to provide additional information (see below) This window also allows you to include a comment to the lender in order to provide any other important information

Once all fields in this window have been completed, select Adverse to send the adverse request to the LOS

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Application approved but not accepted

When the adverse reason is set to 'Application approved but not accepted,' the following additional fields appear:

Reason for Withdrawn

• Competitor offered lower rate/better terms
• Home for sale (if refinance)
• No reason provided
• Other
• Purchase Agreement cancelled (if purchase)
• Service unsatisfactory
• Unexpected life event

Requestor Name

• Select which borrower requested the withdrawal

Request Received Via

• Phone 
• Email
• Text
• Mail
• Face-to-face

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Application denied

When the adverse reason is set to 'Application denied,' the following additional fields appear:

Denial Reasons

• Select a reason that the application was denied

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Application withdrawn

When the adverse reason is set to 'Application withdrawn,' the following additional fields appear:

Reason for Withdrawn

• Competitor offered lower rate/better terms
• Home for sale (if refinance)
• No reason provided
• Other
• Purchase Agreement cancelled (if purchase)
• Service unsatisfactory
• Unexpected life event

Requestor Name

• Select which borrower requested the withdrawal

Request Received Via

• Phone 
• Email
• Text
• Mail
• Face-to-face

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File closed for incompleteness

When the adverse reason is set to 'File closed for incompleteness,' the following additional fields appear:

Denial Reasons

• Select a reason that the application was denied

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Update Loan Status

After the adverse request is submitted, the loan status will be updated to "Adverse"