The applicant's credit was evaluated and a decision was made to deny the credit. Before the lender could prepare the AA notice, the customer withdrew the application. I say the AA needs to be mailed, but the Lender disagrees. Does anyone have an opinion? Thanks.

The credit decision was made, therefore, a denial letter must be sent. Withdrawn only applies to those applications withdrawn BEFORE a decision is made. Same holds true for approved, not accepted. It is when the decision is made that dictates.

Technically the loan officer is correct for Reg. B purposes.

Expressly withdrawn applications. When an applicant expressly withdraws a credit application, the creditor is not required to comply with the notification requirements under §202.9. (The creditor must comply, however, with the record retention requirements of the regulation. See §202.12(b)(3).)


However, once the loan decision has been documented in the file; and the applicant withdraws the application on or after the date of the decision, how can the loan officer prove/document that the applicant did not withdraw the application because the loan officer verbally denied the request?