If borrower loses job during the application process, informs the lender of this fact and states they would like to withdraw the loan, do we have a denial or a withdrawal? We had not decisioned the application yet. It seems like a withdrawal since the borrower expressly stated their wish to withdraw before decisioning, but we would have had to deny the loan since we would not have been able to verify employment. Thoughts?

If the borrower truly initiated contact to the bank and withdrew, I would call it a withdrawn loan for Reg B purposes. However, I have seen instances where a loan officer "steered" a customer to withdraw due to this type of information. If that was the case, it would be a denial. Just make sure you document your file clearly as to what actually happened.

Thank you for the quick response. Most helpful!