Financing in La Mesa>Question Details

Ekc, Home Buyer in La Mesa, CA

I was told by my loan officer, my loan was approved and the loan processors would call me. my loan was denied and I have not received a letter

Asked by Ekc, La Mesa, CA Wed Sep 22, 2010

Pre-approved and went into contract. BofA consistently made conditions to the loan and my wife and I met all request. I was told it was approved by my loan officer after I told him I was seeking an alternate lender. 3 days before closing the loan officer said it was denied and I have not received a letter yet and it has been a week. I have consistently called and mailed BofA and they refuse to return my calls or answer any questions I have concerning this situation. I have lost money and the chance to bid on potential properties due to this.

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Unfortunately, when you originate your loan directly with a FDIC Bank you don't know the quality or the knowledge of the person that is helping you. They are not required to have a DRE license, undergo continuing education or have any experience in the field at all. Could have been selling Toyota's last week.

You need to go in there and talk with the Branch Manager. Next time go with a licensed Loan Originator. They are required to have their license on all sales material or you can check here http://www.dre.ca.gov
Happy funding, Rudi
Web Reference: http://www.umboc.com
0 votes Thank Flag Link Wed Sep 22, 2010
Oh no! It's negligent loan officers like that who are giving the industry a bad name. You should never be surprised that close to closing! Were you informed in writing that it was denied, or did your loan officer verbally tell you? Did your loan officer give you the ECOA disclosure in the huge stack of paperwork? It outlines what happens in case of adverse action.

Here's the law regarding notification of adverse action under ECOA:
(2) Each applicant against whom adverse action is taken shall be entitled to a statement of reasons for such action from the creditor. A creditor satisfies this obligation by—
(A) providing statements of reasons in writing as a matter of course to applicants against whom adverse action is taken; or
(B) giving written notification of adverse action which discloses
(i) the applicant’s right to a statement of reasons within thirty days after receipt by the creditor of a request made within sixty days after such notification,
(ii) the identity of the person or office from which such statement may be obtained. Such statement may be given orally if the written notification advises the applicant of his right to have the statement of reasons confirmed in writing on written request.

So, in English, lenders need to inform you IN WRITING of their decision 30 days after a completed application is received. If it results in adverse action (denial) you then have 60 days to request a written statement of reasons and then they have 30 days to respond to your request. It seems like paperwork ping-pong, so be sure to keep track of dates and copies of your letters.

I've attached the link to the ECOA hub.

Let me know if I can help!

Best of luck,
Dayle
0 votes Thank Flag Link Wed Sep 22, 2010
Ugh, Eric, that sounds like a horrible situation. It's hard to say exactly what happened here as the lender hasn't called you back. When the loan officer told you your loan had been denied, did he give a reason? It's possible that if you even opened up an additional credit card during your escrow, that your debt-to-income ratio went up and disqualified you for the loan.

The lending market is quite the minefield these days, but you definitely should have gotten some sort of response from them, particularly since you had met all the other conditions they requested. I think the service should've extended to explaining what happened, and I can understand why you would be upset.

Have you tried speaking to another lender about your loan? I know this particular BofA lender couldn't do it, and maybe a different lender you would be able to give you an idea of what's going on.

Good luck!

Caroline Choi
Broker Associate/Realtor
Caroline Sells The City LA
0 votes Thank Flag Link Wed Sep 22, 2010
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