We had approved a loan to a customer for a refinance. All underwriting and creditworthiness conditions were satisfied. When we got the title work, there was a judgement on it. We spoke to borrower and talked about adding the judgement amount on to the refinance to get it cleared off the title. Borrower decided he did not want to do that. I am confused as to how to handle this. I think it should be reported as approved not accepted for HMDA and and an adverse action sent to the customer for Reg B. Is that right?

I think it should be reported as approved not accepted for HMDA and and an adverse action sent to the customer for Reg B. Is that right?

I agree.

Thank you Dan. Always good to have validation as to my thoughts. Maybe I know more than I thought I did!