OK I’ve done some more looking and honestly I don’t think I’ve been able to find a smoking gun for you, but here is my opinion and here is why.
I think it should reflect the situation as is on the loan since the application lead to a loan being made. Granted either way you go, you should be sure that the information matches for the individuals. So whichever you report first you should be sure their personal infomation is always first. Whoever is in the second position be sure that their personal information is always listed seconde.
I found this quote from the 2010 A Guide To HMDA Reporting (https://www.ffiec.gov/hmda/pdf/2010guide.pdf).
Ethnicity, race, and sex of the
applicant. Report ethnicity, race, and
sex both for loans that you originate
and for loan applications that do not
result in an origination. At your option,
you may report those data for loans
that you purchase. Report the data
for the applicant and for the coapplicant,
if there is one. If there is no
co-applicant, use the numerical code
for “no co-applicant” in the “coapplicant”
column. For more information,
see Appendix A, I.D., Appendix
B, and the staff comments to Regulation
C § 203.4(a)(10).
Here it makes a distinction between applicaitons and completed loans. Since the loan in issue sounds like it was actually funded I would tend to then that would be the driver in this case.
Section 203.6 and in Jack’s 2010 Real Estate Lending Compliance Seminar book it says the following about Bona Fide Errors:
An error is compiling or recording loan data is not a violation of the Act or the regulation if it was unintentional and occured despite the maintenance of procedures reasonable adapted to avoid such errors.
I thought that might help you as well.