Consumer complaint received 2023-05-24
Company: EMBRACE HOME LOANS
State: VA
Product: Mortgage
Sub-product: VA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
On XX/XX/XXXX I entered a CONSUMER CREDIT TRANSACTION with EMBRACE HOME LOANS to use my VA GAURANTEED HOME LOAN BENEFIT. I submitted an application with XXXX XXXX XXXX via telephone. After furnishing all required information needed to start the process, XXXX XXXX stated that he would get back with me if he ran into any issues. 
XX/XX/XXXX I still haven't heard anything from XXXX I sent a text message just reaching out saying I heaven t heard from you, everything ok His reply I'm sorry running behind because of the holiday weekend. I sent your scenario over to the VA underwriter. I am waiting on a final verdict but I think your credit score is below min required right now. Ill follow up. My rely No worries. 
XX/XX/XXXX - XXXX I still havent heard anything from XXXX. on the afternoon of XX/XX/XXXX I reached out to XXXX to touch base to see what my next plan of action should be no reply. That same day I had a conversation with a friend of mine that referred me to XXXX. I told my friend what had transpired and that I never heard from XXXX, he stated that he would reach out to XXXX to see what was going on. From XX/XX/XXXX to XX/XX/XXXX no response from XXXX XXXX. 
XX/XX/XXXX I get a phone call from XXXX, I couldnt answer the phone at the time so he left a voice mail stating that that my credit history was insufficient and my husbands score was to low. I returned his phone call that same day to talk about the voicemail he left.In summary me and my spouse didnt meet the companies credit standard. I did request for XXXX XXXX to send me the denial letters so I could look over them myself to see what they based their decision off of. 
XX/XX/XXXX I was able to talk to a compliance officer ( XXXX XXXX ) in regards to the decision that the underwriter ( XXXX ) came to. In conclusion of phone call he said the same thing that XXXX XXXX said that both me and my husband 's credit scores/history didn't meet the companys internal standards and or policy and he has been doing loans for a long time and that the companies standards and policy complied with the ECOA ( Equal Credit Opportunity Act ). 
According to XXXX XXXX and XXXX XXXX, me and my spouses credit score/history didnt meet the the creditors internal standards or policies for meeting the companies credit standard which I pursuant to the ECOA ( 12 CFR 1002.9 ( b ) ( 2 ) ) is an insufficient reason to deny and application/applicant. I also mentioned to XXXX XXXX that I would like to apply for the loan under my name which I understand that it would be considered individual unsecured credit transaction. He insisted that I add my spouses income because my compensation from my VA Disabilty Benefit was insufficient. 12 CFR 1002.5 ( d ) ( 1 ) states If an applicant applies for individual unsecured credit, ( I did tell XXXX XXXX that I would like to apply with my information only ) a creditor shall not inquire about the applicant 's marital status unless the applicant resides in a community property state or is relying on property located in such a state as a basis for repayment of the credit requested. If an application is for other than individual unsecured credit, a creditor may inquire about the applicant 's marital status, but shall use only the terms married, unmarried, and separated. A creditor may explain that the category unmarried includes single, divorced, and widowed persons. I did mention to XXXX that I was looking to purchase in the XXXX, NC area but with recent consideration I decided that I would the to stay in Virginia. Virginia and North Carolina are both NON-COMMUNITY PROPERTY STATES therefore XXXX violated the ECOA by asking about information and considering my spouses obligations on his credit report to make the credit decision, as mentioned before solely basing your decision on a credit score/history is a insufficient reason to deny an application/applicant. So as a XXXX XXXX, XXXX XXXX, XXXX WOMEN I strongly believe I was treated less favorably than the other applicants which is a form of discrimination defined in the ECOA. As a COMPLIANCE OFFICER it is your job to make sure that the companys practices is in coherence with FEDERAL LAW and XXXX XXXX failed to do as such. These are just a few laws and regulations that the companys practices XXXX and XXXX XXXX have failed to comply by and may still be violating these laws with other applicants.

Company response to consumer: Closed with explanation