I'm reviewing an application in which a husband and a wife applied jointly to purchase a home. We initially documented GMI for both borrowers. However, at some point in the loan process, it was decided that the wife was not going to be a borrower and closing documents were created with the husband as the only borrower. Should we have GMI on the spouse in our file? And if it is acceptable, do we need something in our file explaining why we have GMI on a non-borrower? Any help would be appreciated. Thanks!

You need to document how it was decided to remove the wife. Was it a counter-offer due to her credit score? Whatever it was, documenting how/why she was removed will support why you collected the DI in the first place but didn't report it.

I agree with Truffle that if you document it properly, you shouldn't have an issue. You were required to collect it at the time based on both joint applicants, so you just need the file to clearly explain this.