I am looking at a loan file with an adverse action. We approved a loan request, contingent on several items including the appraisal. The AA states Approved customer rejected. Notes to the file state "cancel due to low value" since the apprasial came in 50k lower than the customer suggested it might be.

My thought is that in order for this to be approved customer rejected, then I should also see an updated GFE in the file showing the new terms, or this should really be a denied loan since the loan conditions were not met.

Opinions?

It could go like this, IMO.

1) approved with conditions.
2) counter-offer based on appraisal and at same time:
3) denied based on value of collateral.

But shouldn't there be evidence of the counter, since there is no indication that is was denied?

That's what I meant...I would have sent a denial (value of collateral) with a counter-offer, based on actual appraisal info...then you'd be done if they didn't pursue a counter.