Sounds like you have two separate applications here. The first is the husband's application for the FHLB loan for $142,000. If the FHLB application was countered, but the borrower did not accept, you have a denial of the original application. (You did send a denial, right?
) You report this as a denial of $142,000 for him.
Then you have a second application from two people that was originated and should be reported as such at whatever amount you closed the loan at.