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In Response To:
Thread Starter: Anonymous
Title: Re: Withdrawn loan applications

A withdrawn loan application is generally considered to be when the applicant notifies the lender they no longer want their loan application processed. This must occur before a final credit decision is made or before an offer by the bank has occurred. If an offer has occurred but rejected by the applicant it is not considered a withdrawn application and no Adverse Action Notice is required.
The application and offer should be held as a customer refusal of offer and the documents should be held for your normal records retention period. These may be asked for in connection with a CRA-ECOA examination as proof of additional approved but rejected loans made by the bank. Noting the reason for the customer rejection on or with the application, if know may prove useful in determining/measuring the market absorption or failure of the product to be accepted in the community where it is being marketed if rejected by multiple qualified applicants.