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14.5 LENDER WITHDRAWAL OF APPLICATION
If a lender wishes to withdraw an application in the Guaranteed Underwriting System (GUS), they can do so by clicking the "Withdraw Application" button. However, this option is only available if the application's submission status is "Unknown" or "Preliminary." If the application's submission status is "Final," the withdraw application button will be disabled and the lender cannot withdraw the application at that stage.
However, if the application status is set to "Pending," the lender has the option to recall the application from the "Final" submission status. This means that if the
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application has been finalized but is still in the "Pending" stage under application status, the lender can request to withdraw it. This is a two-step process; first the lender must recall the final submission and second withdraw the application. Once the application status changes to "In Process" or "Approved," the recall option will be disabled, and the lender will be unable to recall or withdraw the application.
In cases where the application status is "In Process" or "Approved," the lender should notify the Agency immediately to withdraw the application. By notifying the Agency, the loan guarantee request can be removed from the system, and the funds allocated for that application can be released back to the state's allotment. This is done to ensure that the funds can be utilized for other guarantee requests and maximize the number of loans granted.
It is crucial for lenders to inform the Agency promptly when they no longer require the funds to avoid depriving other pending applicants the opportunity to obtain a loan guarantee. By releasing the funds, the Agency can reallocate them to deserving applicants and facilitate the loan guarantee process efficiently. Some common reasons for withdrawing a loan guarantee request are:
x Lender’s rejection of the borrower’s application;
x Change in property; or
x Choice of a loan program other than the SFHGLP.