REG B states that a creditor shall notify an applicant of action taken within 90 days after notifying the applicant of a counteroffer if the applicant does not expressly accept or use the credit offered.
Let’s say an applicant applies for $250,000 but qualifies for $175,000 due to exceeding the bank’s debt to income ratio guidelines. The borrower verbally accepts the $175,000, an appraisal is ordered but then decides he does not want to go through with the loan because of the interest rate.
Would you consider this a withdrawal because the applicant expressly accepted the lower loan amount, or should an Adverse Action Notice be provided to the applicant based on the original loan amount requested?
Do you have written proof of the verbal acceptance of the lower loan amount? If you do not, I would err on the side of caution and send him the AA notice. But if you have documentation of the acceptance then I would consider it a withdrawal for purpose of Reg B.