A couple of questions regarding how to handle counteroffers:

1) Customer applies for a 5/1 ARM, which ends up being a higher priced mortgage loan. The customer qualifies with the initial loan payment, but does not qualify for the loan based on the highest possible loan payment during the first seven years of the loan (denial). We then look at the 1/1 ARM product for the same customer, which is not a higher priced mortgage loan. The customer qualifies for the 1/1 ARM. The customer accepts the 1/1 ARM product loan. How should this be handled, denial or counteroffer? Should a counteroffer letter be sent if the customer accepts the 1/1 ARM product?

2) Customer applies for a loan to be secured by 80% of an investment account. We counteroffer that we will approve the loan to be secured by 100% of the investment account. The customer refuses. I am pretty sure that we send a counteroffer letter out in this instance, but want to be sure.

Thank you for any help you can give.

1. If the applicant accepted your counteroffer you owe them nothing.

2. You can send a notice denying thier original request or send out a counteroffer/denial notice. Your choice.