When is a counteroffer considered "accepted"? We issued a standalone counteroffer to a customer with a stated deadline. The day before the deadline, we contacted the applicant to see if they were still interested. The applicant said to keep it open until the deadline. The applicant did not respond, we sent an adverse action notice. Now customer (who is angry about that) says they accepted the counteroffer therefore we should not have sent the AAN. In my opinion, the counteroffer was not accepted. (They wanted us to keep the counteroffer open until they confirmed terms with another lender, who they decided to go with.)

A counteroffer is accepted when the applicant affirmatively states as such. I agree with your position that it was not accepted in the circumstances described.

What difference does it make that you sent AAN to the customer. Tell them to go pound sand. If they accepted the counteroffer, ask the how can that be when they got the loan at another bank? If they accepted the counteroffer, the loan would be at your bank.

Accepted counteroffers result in originations.

If they accepted the counteroffer, the loan would be at your bank.

Our rule of thumb goes along with Randy's comment. Regardless if the applicant verbally stated they accepted the counteroffer, if they don't close the loan with our FI then the counteroffer was not accepted. We also do not use a stand alone counteroffer, we use the combined AAN/Counteroffer.

We are looking into moving toward the combined AAN/Counteroffer. Thank you all so much for the feedback!