Loan Withdrawal

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Question:

We have issued a commitment letter on a real estate related loan. The applicant now wishes to withdraw. Is the loan a withdrawal or approved not accepted? Is a denial notice required?

Answer:

If you made a commitment, you must have approved the loan; therefore, this would be an "Approved but not accepted". You do not need to send a denial notice as you did not take any type of adverse action. The applicant withdrew on you.

First published on BankersOnline.com 7/13/09