I am in the underwriting department and have a question about notifying the borrower about our decision to approve or adverse their loan.
We provide an approval, counteroffer, or we adverse the loan. We underwriters here have a system that does not correctly differentiate the notification timing for counteroffers versus adverse action. But I believe counteroffers get additional time on notifications.
I think this also has to do with how we define a counteroffer and adverse action. Our system works with a set of rules, and I think the rules are incorrectly defined. So, here are my questions.
What are the notification requirements for our decision to approve, counteroffer, or adverse a loan?
What is a “counteroffer?”
What is “adverse action?”
