What action should the servicing official take after receiving an incomplete application from a delinquent borrower?

The best course of action in this scenario is to document the incomplete application and send additional forms. This approach allows the servicing official to maintain a clear record of the borrower’s application status while ensuring that the borrower has the opportunity to complete their application process. By sending additional forms, you provide the borrower with a chance to furnish the necessary information that may be missing. This option is aligned with the principles of due process and customer service, as it helps establish a pathway for the borrower to rectify their situation without immediately resorting to stricter measures.

Additionally, documenting the application ensures that all communications and steps taken are properly recorded, which can be important for both regulatory compliance and future reference should the situation evolve. It shows a commitment to working with the borrower rather than rushing to judgment or taking punitive measures, which can be critical in maintaining the lender-borrower relationship and potentially resolving the delinquency without further escalations.