When reporting the action taken for HMDA, there are eight different options which include things like Loan Originated (Code 1), Application Denied (Code 3), File Closed for Incompleteness (Code 5), etc. One of most misunderstood options is Application Approved But Not Accepted (Code 2). Use of this code means that the applicant was fully approved, but they ultimately did not go through with the loan. An applicant is considered fully approved when there are no outstanding “underwriting or creditworthiness conditions” and the loan is only subject to “customary commitment and closing conditions”.
David explains more in the video.
Published 2026/03/26