What counts as an application, and the borrower information Regulation X requires

Identify the application rule first

An application is a submission of financial information for a credit decision, not a promise that the loan will be approved. Keep Regulation X's definition separate from Regulation Z's six-piece definition for transactions covered by the TILA-RESPA Integrated Disclosure rule (TRID).

Regulation X

Under 12 C.F.R. § 1024.2(b), an application is the submission of a borrower's financial information in anticipation of a credit decision relating to a federally related mortgage loan. It includes the borrower's name, monthly income, Social Security number to obtain a credit report, property address, estimated property value, mortgage loan amount sought, and any other information deemed necessary by the loan originator. In this definition, a loan originator means a lender or mortgage broker.

Regulation X permits written or electronically submitted applications, including a written record of an oral application. A borrower therefore need not personally fill out a paper form for the submission to fit this definition. A general question about available interest rates, without submitting financial information for a credit decision, is different from an application.

TRID: six pieces under Regulation Z

For a TRID-covered transaction, 12 C.F.R. § 1026.2(a)(3)(ii) defines the application using six pieces:

• Consumer's name.
• Consumer's income.
• Consumer's Social Security number to obtain a credit report.
• Property address.
• Estimate of the property's value.
• Mortgage loan amount sought.

The Regulation X phrase about other information deemed necessary is not a seventh TRID element. Distinguish information from proof: income is an element, but a pay stub is not; estimated property value is an element, but a completed appraisal is not. The Social Security number for obtaining a credit report is an element, not the completed credit report.

Apply the distinction

Suppose a consumer submits a name, income, Social Security number for a credit report, an identified property's address, estimated value, and the amount sought for a TRID-covered loan. The six-piece application exists even though the lender still needs bank statements for underwriting. If the property address has not been submitted, one of the six pieces is missing.

For exam questions, identify the governing definition, inventory the information actually submitted, and separate the application threshold from later verification and approval. An application can exist before an underwriter has enough evidence to approve the loan.