Product: Mortgage

I began communication with Loan Depot regarding a VA cash-out refinance on/around XXXX XXXX and was contacted by retention department ( XXXX ) same day XXXX My loan was assigned as # XXXX. During this conversation in which I was fully transparent about our employment situations, XXXX XXXX XXXX ( XXXX # : XXXX ) characterized our application as a no-brainer, and a slam dunk, even suggesting that my income alone would get us across the finish line. It was at this time that, given the low APR ( 2.25 % ), favorable terms, and a reassuring conversation with XXXX that I ceased pursuing other lenders. I emphasized to him that my desire for the cash out amount was flexible, ie, we had leeway on total loan amounts. 

My wife and I were 100 % responsive to all inquiries ( I don't think we ever took more than 24 hours to respond ) and aggressively adjusted our schedules to accomplish the pest inspection and VA appraisal with little turnaround. We did everything we could to keep the timeline moving. 

I was going through a separation from XXXX XXXX orders returning to my position XXXX XXXX XXXXt at a major airline, a seamless transition covered by XXXX law that many others before me have underwent. 
My rate was locked again on XX/XX/XXXX, convincing me that I would continue to pursue the loan with Loan Depot. 
Basic research would suggest that our family 's income was sufficient to borrow $ XXXX. If it were even a close decision by Loan Depot, good business practice would stand to reason that Loan Depot may have attempted to rework the total loan amount to close the deal, unless the market 's conditions changed so much that the loan became completely unworkable under current interest rates. 

During the period between XXXX XXXX and XXXX XXXX ( when I was notified of the adverse action ), market interest rates went up .75 %. On a $ XXXX loan, this amounts to a total cost increase of $ XXXX. While I faithfully worked to close the deal under the reasonable belief that Loan Depot was doing the same, my family effectively lost $ XXXX. The reasons for the denial were : XXXX. Too many debts ( We have XXXX credit cards that we pay in full every month. We have NO standing debt other than our current mortgage ) and XXXX. Insufficient income ( Even if that were the case, XXXX never attempted to rework the loan value. Also, we're in the process of working with another company and our income is seemingly more than sufficient ) Of note, ~ $ XXXX of mortgage lender points were added to my disclosure agreement. As this was undiscussed and unforeseen, I voiced my displeasure about this addition in an email to an account manager just two days prior to the denial. 

It is my opinion, bolstered and supported by the facts, that Loan Depot decided that our loan was no longer in their best interest locked in at 2.25 %. Instead of reworking the loan ( which would have revealed their machinations ), they simply denied us. This is a textbook bait-and-switch. I'm not certain what they did was illegal, as there is no way for me to see the details of their underwriting, but it was certainly unethical. After wasting XXXX weeks of my family 's time and ultimately costing us $ XXXX over the life of the loan compared to current market rates, they informed me of the adverse action, citing insufficient income and too many outstanding debts. We have XXXX credit cards and pay them in full every month.