Product: Mortgage

XX/XX/XXXX. Mortgage Loan Number XXXX - Navy Federal Credit Union We applied for a HELOC loan to repay our debts and to remodel our second home, where my father lives and who has XXXX. The loan was going to be used for both those purposes, consolidating/paying off debt and for making the home ADA compliant to allow my father to remain in the home with a caregiver. The loan was denied and we were unable to contact anyone for weeks. We were able to speak to someone after contact the general line, though the loan officer/supervisor never responded to our calls, voicemails, or emails. We were denied on the following reasons : Excessive Obligations ; Delinquent Accounts ; Too many accounts ( possible inquiries ). 

We checked our records, we don't have delinquent accounts, I have XXXX student loan accounts ( we purchased both our homes through Navy Federal and had this same issue each time ) that I refused to consolidate and will be paid off in XXXX from the PLSF program, as I've been working for the XXXX  XXXX XXXX for over XXXX years. 

My wife had filed bankruptcy in XXXX, where she made a deal to keep the home and the vehicle, only required to pay off unsecured debts. The former spouse lost his employment and moved out, leaving her to work full-time as a single-mother. Since then, she's paid all of her bills on time, re-married ( to me ), and we now own XXXX homes. Our response to the denial is below, we used this statement along with providing bank statements during the appeal process, which we have now been denied.

One main concern is the bank 's statement within their detail letter. " Even though delinquent obligations have been satisfied, this does not negate the fact that they were not paid as agreed ''. There was no context in this letter that made that a valid segue. There was no mention of the other XXXX denial reasons mentioned in the letter, and it feels very personal and specific to the bankruptcy that should not be used against us. We both are professionals with over XXXX years of work experience in our fields, both of us are college educated, and both having good credit ; credit scores are XXXX & XXXX. 


Please see the following response to the bank 's initial denial : XXXX XXXX, My wife and I received your denial letter and would like to speak to you regarding the decision ; this is not our first time working the Navy Federal where a denial notice was immediately issued when additional information is needed. 

Regarding the denial reasons provided in your statement, to both applicants, it states delinquent obligations. We will need more information on this, as there are no delinquent accounts on either applicants records. 

Excessive obligations in relation to income : We own XXXX homes with XXXX home currently being occupied, this should be considered a rental property and the mortgage taken as income. Additionally, both homes were purchased through Navy Federal and we had problems each time pertaining to this category, as the total number of accounts were used against us ; there are XXXX accounts, for XXXX, that are all student loan accounts. I, XXXX, have not consolidated these accounts and each one is in good standing, and both XXXX and I are government employees that have long since been qualified for Public Service Loan Forgiveness ( PLSF ). Lastly, Im surprised to see just the XXXX credit report being shown, as XXXX shows my credit score to be XXXX. 

To recap, under XXXX denial notice : -The too many accounts should not be used against me as these are strictly student loan debts that are, and have been, in good standing with a payoff date for XXXX. 

-Ratio of balance to limit isnt too high, as theres only XXXX credit card account with a high balance. The balance will be paid off using the funds that this application is allowed to be used for ( Navy Federal only allows XXXX answer when asked if the loan would be used for remodel/debt payoff etc. ). 

-Number of inquiries : We own a small business and have requested a business credit card to establish our business credit and purchased a vehicle ; though we all know that this issue doesnt have a big affect on credit, however, the context for why the inquiries made are helpful for the big picture. 


Pertaining to XXXX denial notice, " Delinquent past or present credit obligations '' : As stated earlier, we both have accounts that are, and have been, in good standing. We are unaware of any accounts being delinquent, and have had this exact issue when purchasing both our homes through Navy Federal. The excessive obligations is being used against us, though the loan would be used to payoff these accounts, which is allowed per Navy Federals application for such a loan. Lastly, the number of inquiries is only due to our needing of a vehicle and business accounts. Navy Federal should be in support of XXXX veterans and women starting small businesses. 

In summary, -Delinquent accounts : these are unknown to us and not found on our credit reports. No account is delinquent and all are in good standing. 

-Excessive obligations : XXXX XXXX have balances left on her credit cards, which would be paid off with the loan, as advertised per the specific loan requested. This should not be used as reason to deny, when it is the reason of which Navy Federal states is the purpose of the loan type. 

-Number of inquiries : As stated, we own and operate a small business that requires us to have our own vehicles and business accounts with a credit card to establish business credit. Navy Federal should be in support of XXXX veterans and women owned small business ventures. 

We recognize that this is a lot to unpack and are happy to work with you on resolving these issues. We have great income, steady-long-term careers, over {$70000.00} worth of available credit, and have been in good standing with our student loans for almost a decade. 

If youre unable or unwilling to assist us, we would like to speak with a manager regarding this decision and the incorrect issues cited within. 

Thank you so much for all the hard work and effort to untangle this debacle. We truly appreciate the time it takes to process these applications and arduous back and forth via emails and phone calls. Feel free to reach out anytime, as were always happy to speak with you. 

We would like to state that were aware that theres a timeline in place and would appreciate the opportunity to speak with you or someone else to resolve these issues. 

Kindly, XXXX & XXXX XXXX.