Customer applied for $5000 ln to purchase a trailer. Discussed with loan officer and told loan officer she was actually going to be looking at one that was only $1800. Loan officer counter-offered/approved customer for $1800 (told me she would not have approved $5000) and customer said okay and that she'd get back to us after she looked at the $1800 trailer. Customer ended up not getting the trailer and has not contacted us back. I say this is a decline based on 202.2(c)(1)(i) and 202.9(a)(1)(iv). Loan officer insists it's not since the customer agreed to the $1800. Thoughts?

The customer didn't get the loan, therefore they didn't accept your counteroffer. It's a decline.

I'm playing devil's advocate due to the argument I got - 202.2(c)(1)(i) simply states that adverse action on a counteroffer is when the applicant does not use OR expressly accept the counteroffer. The customer expressly accepted it - verbally - she just didn't get back to us. It doesn't state that the customer has to actually get the loan.

If I tell you I'll accept the counteroffer but later change my mind and decide I don't want the loan, for whatever reason, then I did not accept the counteroffer did I; and you declined my original request?

I agree with Dan. I think the type of action should be classified as a denial.