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Denial Vs. Withdrawn By Applicant (Refinance)

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Question: 
Borrower applies for a refinance. Original application was based on a value that would be 80% LTV. Appraisal came back a little low. LO goes over options with borrower that would include PMI on the loan. Borrower thinks about it and calls back the next day and indicates they do not wish to proceed. Is this a denial or withdrawn by applicant?
Answer: 

This is a denial as the lender would not make the loan based on the original request. What the lender did was make a counteroffer (with PMI, etc.) which was not expressly accepted by the borrower. (12 CFR 1002.9(a)(1)(iv))

First published on BankersOnline.com 5/13/13

First published on 05/13/2013

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