Consumer complaint received 2023-06-25
Company: Spring Equity LLC
State: WA
Product: Mortgage
Sub-product: Home equity loan or line of credit (HELOC)
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
On XX/XX/XXXX, XXXX/SPRINGEQ, LLC, obtained my credit report resulting in a hard inquiry. I am requesting the removal of this credit inquiry and submitting a complaint of discrimination based on gender and veteran XXXX status, based on deceptive practices from a dishonest lender. SpringEQ initially assured me, through my XXXX XXXX loan officer, that I would qualify for a XXXX loan to fund our addition that is currently under construction. 

SpringEQ gave inaccurate and deceptive information prior to obtaining my credit report by informing me that I would qualify for the HELOC while my addition is under construction. I was working with XXXX XXXX from XXXX XXXX, and he used SpringEQ as the third-party broker for my requested XXXX loan. I told XXXX that we are adding an addition to our home and are looking for a home equity line of credit to complete the project. I sent all requested documents, was required to pay off my taxes in full and did so, my credit was approved, my debt-to-income ratio was approved, the home appraisal that was required came back, looking great. That same appraisal included photos of my addition that is currently under construction. 

SpringEQ obtained my credit report, causing a hard inquiry, based on inaccurate and deceptive information at the beginning of the loan process. I was told that all my documents and appraisal were approved, and everything looked great. My loan officer told me that I would receive the final approval the week of XX/XX/XXXX and then have the funds in my account 4 days after the final approval. However, SpringEQ denied my XXXX request on XX/XX/XXXX, citing that they would not approve the loan because of the addition being under construction. This reason for denial contradicts what the company informed me at the start of the loan. If they would have been honest about disqualifying me because of the construction at the beginning of the process, I would have never continued the process with them or allowed them to obtain my credit report. This hard inquiry needs to be removed so that I can reapply with another upfront and honest lender. 

I have reached out to Spring EQ through email, phone, posting reviews, and reporting to the XXXX, and still have not heard anything from them to resolve this situation. I believe SpringEQ discriminated against me based on my gender and veteran XXXX status, as everything else in the loan process was approved and there is not any other reasonable excuse to deny my loan in the last week of the process. They cite the denial is because the construction of the addition is incomplete, but that makes no sense, and should have been disclosed at the very beginning instead of leading me along for 30 days. I firmly believe this is discrimination against my gender and veteran XXXX status. This process has caused my credit to plummet as a result of paying off my taxes in full as one of the requirements to proceed with the loan and the hard inquiry.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation