Action Taken and Loan Amount?

Posted By: Likes to Comply

Action Taken and Loan Amount? - 02/08/22 08:22 PM

Customer applied on 4.1.21 with a loan amount requested of $735,250. On 5.11.21, customer was verbally counteroffered a loan amount of $701,250 due to the appraisal coming back lower than expected. Customer accepted the counteroffer so the loan request continued in underwriting. Before a credit decision could be made, the customer withdrew the request on 6.7.21.

Is this reported as withdrawn and $701,250 loan amount based on the accepted counteroffered loan amount or is this a decline with a loan amount of $735,250?

I seem to remember that accepting a counteroffer kind of resets things, but this scenario doesn't quite fit the examples in the guide.

Thanks in advance for the help!
Posted By: rlcarey

Re: Action Taken and Loan Amount? - 02/08/22 08:26 PM

How can you make a counteroffer if you had yet to totally underwrite the loan? This is a denial in my book.
Posted By: Dan Persfull

Re: Action Taken and Loan Amount? - 02/08/22 08:49 PM

Before a credit decision could be made,

I agree with Randy. If a credit decision hadn't been made then how were you able to offer the applicant a loan on different terms than applied for?

The only loan decision made here is the applicant was told your bank couldn't loan them what they applied for. That's a denial, not a counteroffer.