Does Regulation G indicate if denied and withdrawn applications are included in the de minimis exemption? I know there is a two prong test to qualify as an MLO:
1. Takes a residential mortgage loan application; and
2. Offers or negotiates terms of a residential mortgage loan for compensation or gain.

However, I can't seem to find anything that addresses this directly. I've heard that the FDIC has taken the position that applications whether approved, denied or withdrawn should be counted.

1007.101(c)(ii) Prior to engaging in mortgage loan origination activity that exceeds the exception limit in paragraph (c)(2)(i) of this section, an employee must register with the Registry pursuant to this part.

Engaging in mortgage loan origination activity has nothing to do with loan approval. Loan approval is not part of the two prong test.

Perfect. Thank you.