A lender approved a mortgage application, but the applicant decided not to accept the loan. Under HMDA, which "action taken" code applies?

Correct answer: Approved but not accepted

The 6 HMDA action taken codes are: (1) Originated, (2) Approved but not accepted, (3) Denied, (4) Withdrawn by applicant, (5) File closed for incompleteness, (6) Purchased loan. "Approved but not accepted" applies when the lender issues a legitimate approval but the applicant declines (chose another lender, changed plans, etc.). This is different from "withdrawn" — withdrawal happens before the lender makes a decision; "approved not accepted" happens after approval.