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1. Create newLoanApplication schema. 2. Switch to Design View. 3. Select element which has type (subelement of autoLoanApplication, for example). 4. Popup menu -> Properties -> click ellipsis in Definition line. Dialog appears. Result: element type can be changed, but it seems to be no way to remove type definition at all using this dialog. It's inconvenient. The way to do it is to switch to Source View and remove a definition manually.