Customer applies for $100k loan. Appraisal comes in lower than expected so bank counteroffers to do loan for $90k. If the customer accepts and closes the loan at $90k. You wouldn't report $100k, you would report $90k.
But if they don't accept you would report the $100K.
It appears the bank was able to offer the applicant additional money based on their underwriting. It does not appear by the information provided the applicant amended the loan amount. The applicant did not accept the counteroffer for a larger loan amount therefore the original amount applied for, in this case $550K, would be reported.
The opinions expressed are mine and they are not to be taken as legal advice.