I have an application for a HMDA related loan that went through the underwriting process, approval was given, a commitment letter was sent to the borrower and was signed. We began to proceed to closing. The borrower decided last minute to purchase the property through seller financing. This does not seem to fit in any of the Type of Action options. code 1 is originated. Nope. Code 2 is application approved but not accepted. Nope. It was accepted. Code 3: denied. Nope. Code 4 withdrawn. Yes BUT the description says withdrawn before a credit decision is made.

Is our best selection code 2 application approved but not accepted as it never closed?

How was it accepted? The loan never consummated, so it wasn't accepted. That's how i'd code it.

The terms under which the loan would close were accepted by the borrower through their signature on a commitment letter from the financial institution.

But they didn't truly "accept" as the loan didn't consummate. I would code as "approved, not accepted". If they had truly "accepted", you'd have a loan on your books to them now, and you don't. That's the only way i know how to look at these.

Thank you raitchjay. That is the most fitting option.

Love this site!

I agree with raithjay. That's what Code 2 is for. The APPLICATION was approved (but the lender), but the borrower never accepted the loan.

Thank you, David