Request for secondary mkt loan - sent through AUS is approved/good to go. We have the credit, and AUS in the file. If the customer calls and says "the house has too many repairs to make and I want to cancel my loan request" - are you treating this as a withdrawal or an approved my not accepted? We can clearly point to the approval in the file via the AUS. We have also sent out disclosures and for all intents and purposes, we are/were actively processing the request. If this is an approved not accepted...what fields are we actually reporting?

We get accepts from LPA all the time but if the applicant withdraws before we finish our underwriting (verifications, clear title, appraisal, etc.) then we treat them as withdrawals because no credit decision has been made at the time of the withdrawal.

The answer to your question is when do you consider the loan request approved - the AUS finding or when you finalize the AUS underwriting requirements?

Generally Fannie & Freddie's AUSs are simply saying we will purchase the loan if the submitted information is accurate and verified. They are not actually approving the loan. What do you do if during your process you can't meet one of the covenants in the DU or LPA findings?

The loan would then go in-house or be denied.

The loan would then go in-house or be denied.

That implies to me that your loan decision is not made until all requirements in the AUS findings are verified. That would make the loan request in question a withdrawal IMO.