I seem to remember that if you had a situation where the loan could/would not be approved at the original terms... you could not permit an expressly withdrawn application but must in fact deny the request. Although when I review ECOA I am not finding any support and what it states for expressly withdrawn doesn't make sense to me given this fact pattern. .Help is appreciated..
Fact pattern is - client wanted loan for $300,000 to purchase property and loan was approved subject to an appraised value of $400,000 or more. Appraisal came in at under the sale price... $350,000... so loan would not be made for $300,000 but only $265,000. Applicants are backing out of transaction and want to withdraw their application..
So, allow the expressly withdrawn or do we decline the loan ( counter-offer would not be accepted and anyway it would result in a denial if not accepted)..