Steps to Initiate Withdrawal/Cancellation/Denial
3.22.22
If a team member requests to withdraw a loan from their in process pipeline, first confirm the current milestone and if there is a loan decision in the file. Sales Support will only cancel files that have triggered for disclosures but have not been disclosed yet.
Who Completes Cancellation Request:
| Encompass Milestone/UW Decision | Who Completes Adverse Action Request |
| Pre-Approved/Conditional Approval with Loan Decision | Underwriter |
| Processing/Submitted without Loan Decision | Processor |
| File Started/Qualification but no disclosures sent | Sales Support |
To request a cancellation:
- Click on "Sales Support Only - E-consent requests" button from the Borrower Summary page
- Fill out the Adverse Action request fields
- Denied By - Name of team member who is requesting the cancellation.
- Denial Date - Date the cancellation request was received
- Cancellation Reason - see chart below
- Explanation - Details of who requested the cancellation & why
Cancellation Reasons:
| Cancellation Type | Definition |
| Denied UW | Borrower does not qualify for any reason (income, credit) or property not eligible. Restructure not available. |
| Denied Incomplete | Borrower did not provide documentation to clear conditions required to qualify. UW is unable to issue a loan decision |
| Withdrawn | Borrower explicitly requests to withdraw their application. They must state they are not moving forward for any reason not related to qualification. |
Once the Adverse Action Request is completed, the loan will go to Compliance to complete the cancellation.
- Compliance will complete the HMDA screen, issue the statement of denial or withdrawal and move the loan to the "Adverse" Encompass folder
HMDA loan status options for reference:
- Pre-Approval approved but not accepted - Borrower does not accept terms of pre-approval
- Pre-Approval suspended & denied - Borrower does not qualify & loan cannot be restructured to qualify