Denial Reason to use

Application for a secondary market loan. Customer will start drawing social security income in January. Per FNMA guidelines, the loan would have to close no earlier than the month the income starts. We countered to move closing date to January on this purchase, but customer decided to go with a different lender. Am I correct that this is a denial, not a withdrawal since the counter was not accepted? I am not sure what to use as the denial reason and would appreciate any advice.

Lack of current income sounds like.

Thank you. One more question, what income would I use when reporting for HMDA? I assume the income without the social security added in?

The income used to make your decision.