For applications subject to TRID, getting an applicant’s intent to proceed is an important step in the process. Prior to receiving the intent to proceed, an institution cannot charge the consumer for anything beyond “a bona fide and reasonable fee” for a credit report. The intent to proceed is essentially the date an applicant “accepts” the Loan Estimate and, as a result, the disclosed costs associated with the loan. A key piece of the requirements surrounding the intent to proceed process is documentation. While documenting an applicant’s intent to proceed is required, there is no mandated method for doing so. Thus, the documentation could look different from application to application, depending on how the intent to proceed was provided by the applicant. Section 1026.19(e)(2)(i)(A) states the …consumer may indicate an intent to proceed with a transaction in any manner the consumer chooses, unless a particular manner of communication is required by the creditor. The creditor must document this communication….Further, documentation of an applicant’s intent to proceed must be retained.
Our Review Team observes many different ways in which institutions document an applicant’s intent to proceed. While many like to have a signature from the applicant stating they plan to move forward with the application, waiting on an applicant to return a signed form can delay the loan process. Thus, having flexibility when documenting the intent to proceed can help keep the loan process moving along.
There are several other ways to document an applicant’s intent to proceed. These might include some type of system notation; a handwritten note by the lender in the loan file or even a printed email, just to name a few. Whatever method is utilized, however, the lender should include the date the intent was received, and which applicant(s) provided it. The important thing to remember is there MUST be some form of documentation indicating the applicant provided an intent to proceed.
If you want to learn more about TRID compliance be sure to check out our store as we have several different webinar options.
Published
2025/11/17