HUD's FAQs - Does the Special Information Booklet Need to be Provided if the Mortgage Broker Declines the Application or the Applicant Withdraws the Application Within the Three Business Day Period?

Compliance > Regulation X - RESPA > GFE and HUD-1 > HUD's FAQs
Q: Section 3500.7 of RESPA states that the GFE need not be provided if mortgage broker or lender declines the application or the applicant withdraws the application within the three business day period after application. The provisions for the Special Information Booklet state that the lender need not provide the Special Information Booklet if the lender denies the application before the end of the three business day period. Does the Special Information Booklet need to be provided if the mortgage broker declines the application or the applicant withdraws the application within the three business day period?

A: No, the Special Information Booklet does not need to be provided if the loan originator declines the application or the applicant withdraws the application within the three business day period.

This can be found in GFE-Denial – FAQ #2 of HUD’s FAQs.  HUD’s FAQs can be found at http://www.hud.gov/offices/hsg/rmra/res/respa_hm.cfm.

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