Consumer complaint received 2018-01-22
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: FL
Product: Mortgage
Sub-product: Home equity loan or line of credit (HELOC)
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
On or about XX/XX/XXXX, ( Application No. : XXXX ) and again in XX/XX/XXXX, ( Application No. : XXXX ), I applied with Bank of America for a fixed rate on a loan in the amount of {$40000.00}, which is my understanding the minimum amount which must be taken in order to qualify for a rate of 5.6 % for a term of 20 years and monthly payment of {$270.00}. The two above loans were an attempt to pay-off my existing Home Equity Line of Credit ( Acct No. : XXXX XXXX XXXX ) in the amount of {$28000.00} and reduce the interest rate, which is currently 8.060 % with a monthly payment of {$210.00}, including finance charge of {$190.00}. As a loan condition, payments are taken directly from my BOA. The new loans would also have this same condition upon approval.

In denying the initial loan from XX/XX/XXXX, it was stated that my debt to income ratio was insufficient for the amount of the loan. However, it is interesting to note that although my debt to income ratio was the deciding factor in denying said loan, Bank of America offered me an opportunity to apply for a fixed rate on my existing loan at a rate of 7.5 % with payments in excess of {$300.00} which they stated would " more than likely '' be approved as i did not have to go through the application process and that same is solely based on my credit rating. This was unacceptable to me as my goal was to lower the existing interest rate of 8.060 %.

In reapplying ( Application No. : XXXX ) in XX/XX/XXXX, it is now Bank of America 's position that due to my first mortgage being in forbearance, they are unable to approve the new application. This is interesting as the Federal Disaster Act states that a forbearance related to a State of Emergency being declared in the State for which a mortgage holder resides SHOULD NOT result in an adverse credit reporting. In addition, in checking with my first mortgage company, they concurred that their reporting to the credit agencies on my loan does not reflect negatively insofar as their reporting and that they show no notations of someone from Bank of America making an inquiry as to same,.

As such, it appears that Bank of America is engaging in unfair banking practices in determining refinancing qualifiers when it comes to a consumer securing a lower interest rate in an attempt to collect on higher interest rates.

Additionally, while they have stated my debt to income ratio precludes me from being approved on the loans, it is further interesting to note that while i have repeatedly made overage payments on my existing line of credit of {$150.00} to {$200.00} per month ( thereby totally payments being made in excess of {$350.00} ) these payments have never been brought into question by Bank of America as to whether i could afford same based on my income.

Finally, in requesting Bank of America 's Corporate Office email address and/or address so that i can file a complain as to their unfair banking practices, i was advised by XXXX XXXX, Processing Manager in XX/XX/XXXX7, he was unable to provide said information to me.

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