If an application is denied but the applicant offers different conditions, ie, more collateral, shorter terms, etc. does the application go on the HMDA LAR twice? These are two different product codes in our system.

It is up to the bank. If you start over with a new application number, report both. If you keep the same ap number, report the final outcome.

Be consistent in how you treat these. If I actually sent a denial, I would report the denial and then start a new file with a new app and documents and then report the origination also.

The bank should have a standard and follow it. I haven't (in my clients) seen any who mix and match. I have ones who decline but then use same ap # when client comes back. They report the ultimate outcome of the ap # as allowed.

I have others who start over with a new ap #. They report both outcomes.