There are lenders here who want to deny applicants based on the fact that they have accounts showing with consumer credit counseling programs. Is this really a legitimate denial reason? It seems like they could have "Delinquent past or present credit obligations with others" or "Poor credit performance with us" that would serve better as denial reasons.

If they're getting credit counseling does that really mean they're not creditworthy now?

If that is in your underwriting criteria, then that is part of your underwriting criteria.

When you say "There are lenders", it better be every single one of them however.

You also need to define "consumer credit counseling programs". If there is an indication on the credit report that payment on certain debts have been taken over by a third party, these are not "counseling" programs.