I have an application whereby the customer checked FHA as the loan type. We don't offer FHA loans. The loan was denied due to bad credit. How do we report the loan type? Had this loan been approved, it would have gone forward as a conventional loan request.

I am looking at 2017 data. There is one application like this that was reported as FHA. The other was reported as Conventional. Which way is correct?

How can an application be made for something you don't offer?
Someone should have corrected that way back when or the loan should have been denied based on unavailability of product selected.

Yes, the loan officer should have corrected/clarified this at application time. But he didn't. So.....how should this application be reported?

The applicant applied for a FHA loan. That is what I would report since it did not originate as a conventional loan.

Thanks everyone.