Examiners will roast a bank that tells customers to WD rather than be denied, "because if you don't I'll deny the loan and that looks bad on you." Well, no denials makes the bank look better and especially if minorities, females, etc. are the ones more often being told this. It's a discriminatory practice and an attempt at shielding the bank from denying those protected by Reg B and fair lending.
I'd nip this one in the bud and ensure there are not other instances of this advice.
My opinions are not necessarily my employers.
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell