Consumer complaint received 2023-08-11
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: FL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
On XX/XX/XXXX, I started my application for a home loan with Bank of America. I spoke to XXXX XXXX ( NMLS ID : XXXX ) about how I can qualify for the Bank of Americas Community Affordable Loan Solutionprogram. We discussed my income, my credit score, my successful completion of an approved Homebuyer Education course, and other qualifications. We reviewed - in detail - that although I earn income from various sources, only sources that show a 2-year history will qualify as income in the context of an underwriters assessment. And under that definition, he assured me that I have an annual income that qualifies me for the Community Affordable Loan Solution. 
On XX/XX/XXXX, I was introduced to XXXX XXXX ( XXXX ID : XXXX ), who was to serve as my Lending Client Associate. I was told that he would be assisting me with submitting all documents needed to assess whether I met the qualifications for the Community Affordable Loan Solutionprogram. On XX/XX/XXXX, I submitted all W2s for XXXX and XXXX, along with a document that outlined how I earn income from multiple sources. Text from the document explained that I have one primary job wherein I earn an annual salary. That job- which I have been at since XX/XX/XXXX- is the only source of income that I have held without interruption for the past 2 years. And that- I was told- was the only job that qualifies under the programs definition of annual income. I was told that all other income sources would not be counted towards total income because I did not hold those jobs for 2 or more years. Using that one source of income as my sole qualifying income source is the reason that XXXX proposed a {$210000.00} loan request. Calculating that loan amount was predicated on the {$88000.00} that I earn annually from that one job - the only job that I held for a period of 2 or more years. 
To eliminate any confusion and provide complete transparency into my finances, on XX/XX/XXXX I submitted an additional document illustrating the numerous jobs that I have held since XXXX. A document titled Income Sources Visualized.pdf plotted all of my part-time, seasonal, contract, and freelance work on a timeline. That timeline showed that only one job spanned a continuous XXXX period. All other jobs were short term, and none of them exceeded 2 years of continuous tenure - a fact which would disqualify them from being considered income in the income qualification component of the Community Affordable Loan Solutionprogram. 
And so, since my income documents were accepted without pushback or rebuttal, I operated under the premise that my income qualifies for the program. Based on what I was told by XXXX XXXX and XXXX XXXX, I qualified. Over the course of 2 months I submitted additional documents : bank statements, copies of checks, signed letters explaining the source of deposits, etc. And as the process continued, no indication that I was not qualified for the Community Affordable Loan Solutionprogram was given. 
On XX/XX/XXXX, I received a call from XXXX XXXX, XXXX notifying me of Bank of Americas plans to cancel my loan application. After weeks of confirming that I qualify for the Community Affordable Loan Solutionprogram, XXXX XXXX conveyed that the ( unnamed ) underwriter assigned to my application determined that my total annual income exceeded the maximum allowable amount for the program. This underwriter did not adhere to the definition of income that was defined as only jobs with a 2-year history. But rather, they took into account money that I received as payment for jobs that I have held temporarily. As a result, my loan was disqualified and subsequently canceled. 
The problem is that this method for evaluating my income flies in the face of - not only conventional wisdom - but also all accepted fundamental laws of actuarial science. The reason that lenders only consider 2 years of continuous employment with a single employer as income is because that factor is a strong predictor of the borrowers future earnings, and therefore portend a high probability of loan repayment. Conversely, any temporary, seasonal, freelance, or contract work that does not show a consistent income stream over a 2 year period are not counted towards income because future earnings from such ventures are unpredictable. 
Admittedly, over the last 2 years, my total earnings have exceeded the median household income for my metro-area. But those earnings came from jobs dependent on conditions related to the coronavirus. As the pandemic-era job growth comes to an end and remote work starts to wane, my ability to earn as much as I have in the last 2 years will diminish. The only steady income source I have- the one that serves as a predictor of future income- is the one primary job that I have held for the last 2 years ; and that is the only income source that should be measured in my evaluation. In deciding to count my short-term money streams toward my annual income, the underwriter disputes all generally-accepted mathematical and statistical methods for loan processing. Your underwriter is inflating the amount of future earnings over the life of a 30-year mortgage. 
Furthermore, after receiving assurances that my income would qualify me for the loan program, the Bank of America ran my credit - an action that decreased my XXXX XXXX by XXXX points. If anyone had let me know that my income would be a disqualifier before they ran my credit, I would not have proceeded with the application, and my credit score would not have been adversely affected by Bank of Americas inquiry. Running an individuals credit under false pretenses is a violation of the Fair Credit Reporting Act ( FCRA ) along with numerous consumer protections afforded to me under the Consumer Financial Protection Bureau. 
Losses I sustained from the Bank of Americas professional negligence include a lower credit score - and not to mention - the pain and suffering I incurred from being subject to an arbitrary months-long audit of my finances that ultimately robbed me of realizing my dream of owning a home. 
Homeownership strengthens our communities and can help individuals and families to build wealth over time, said XXXX XXXX, the head of Neighborhood and Community Lending for Bank of America. The Community Affordable Loan Solution is supposed to help make the dream of sustained homeownership attainable for people who work hard, pay their debts, and are ready to commit to serving their communities. Everything about my profile shows that I am a shining example of the type of customer that your bank wants to lend to. I earn a respectable income ; I have a stellar rental history ; my credit score is in the top 20 % of all Americans. And yet, this process has made it more difficult for me to own a home at every turn. How can I win if the goal post keeps moving?

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation