Are you asking me or Truffle?
If I send the denial, I report it on my LAR.
You can try to ask them if they will be reporting that on their LAR or not. You will probably have to talk to several people to get an answer and then most likely they will tell you that you have to report it because you sent the denial. Is that right? No, if they make the decision, they should be sending the denial and reporting on the LAR.
What they are really saying is that they are refusing to buy the loan from you and you are still free to make or deny the loan on behalf of your bank; therefore, you report.
NOLA is my Beach!