Consumer complaint received 2017-12-20
Company: ASSOCIATED BANC-CORP
State: IL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
To Whom it may concern, InXX/XX/XXXX I applied for a Conventional First Time Homeowner Occupied mortgage loan through Associated Bank with XXXX XXXX in order to purchase a home as our lease was up in XXXX, XXXX but extended 2 months as our landlord was going to sell home due to inability to continue to pay her mortgage. I was preapproved for loan and I placed offers on multiple homes and started process on XXXX XXXX XXXX, XXXX, IL but I did not proceed further due to inspection results. XXXX, XXXX, my wife started a mortgage loan with Associated Bank Loan Officer, XXXX XXXX, and placed an offer on a home in XXXX IL. She did not continue with purchase due to Plat of Survey issue 2 weeks before closing. In XXXX XXXX, my wife closed on property we currently rented due to failure on Countryside home that left us in a tight situation due to expiration of lease extension, thus placing ideal family home purchase on hold. As a result of the quick decision to purchase the rental we lived in, we did not investigate the secondary school system and realized it was unacceptable for our children led to decision to purchase out of district as initially intended. 
In XX/XX/XXXX my wife was in contact with XXXX XXXX to ask her if it was possible for me to purchase a First Time Homeowner occupied being that my wife purchased a home with XXXX XXXX and Associated Bank in XXXXXX/XX/XXXXXXXX advised my wife that people do it all the time and all that mattered was debt to income ratios. On XXXX XXXX, XXXX, I was in contact with Associated Bank Loan Officer, XXXX XXXX, and let her know that I was ready to start the home search again. I started the prequalification process with a loan application and received many PreQual letters from XXXX. On XXXX XXXX, XXXX, I received a denial letter from Associated Bank and I asked XXXXXXXX by text if this was a mistake and if I should continue to place offers on homes. XXXX mentioned to me that the letter was for a partial application that was submitted. XXXX reassured me by text that I was approved. I continued to place offers on owner occupied investment properties in the Ideal school districts for my XXXX girls. On XXXX XXXX, XXXX, I went under contract on XXXX XXXX XXXX XXXX, XXXX, IL XXXX. XXXX XXXX, XXXX, XXXX XXXX, Sellers Agent, text me with concerns regarding the cancellation of appraisal by Associated Bank that was not relayed to me by Associated Bank until XXXX XXXX, XXXX when I requested XXXX to furnish details for cancellation as she was on vacation until then. XXXX notified me that appraisal was cancelled because of loan being denied conventional due to credit history post bankruptcy in XXXX but said she spoke to underwriting and that she could do FHA but would not be able to close by contract date of on or before XXXX/XXXX/XXXX. I continued to email her to find out why this was n't an issue back in XXXX XXXX. XXXX stated that the creditors on XXXX XXXX credit pull were not on the initial credit pull. I continued to ask her to furnish me with copies of the credit reports that she used to preapprove loan initially in XXXX XXXX, and in XXXX XXXX. XXXX sent me credit pull from XXXX XXXX, and XXXX XXXX. I asked XXXX to please supply the credit pull from XXXX XXXX that was acquired by Associated Bank. XXXX emailed me that she only used the 2 credit pulls that she sent me. I asked XXXX if it was common practice to use a 15 month old credit pull to preapprove current loans. I asked XXXX to escalate this event to her manager and the underwriting manager in order to get loan approved being that fault was made by institution. I told XXXX that if she would have used the XXXX XXXX credit pull instead of the XXXX XXXX, she would have noticed that the XXXX XXXX collection from XXXX was transferred to a collection agency in XXXX and would have given me fair warning to clear collection and show 6 months clear credit history. I continued to escalate issue with Vice President, XXXX XXXX Loan Manager, XXXX XXXX and then to Customer Senior Specialist, XXXX XXXX on XXXX XXXX, XXXX. XXXX was able to review all documents and emails and overturn decision to conventional processing on XXXX XXXX, XXXX to go back to the underwriting stage. I was assigned XXXX XXXX as new loan officer on XXXX/XXXX/XXXX. XXXX was in contact with me on XXXX/XXXX/XXXX and mentioned she would review all docs and requested last bank statemnts. I sent XXXX bank statements XXXX/XXXX/XXXX. XXXX XXXX, XXXX, XXXX emailed a request of my signature on electronic documents. I emailed XXXX that the Documents were still under XXXX XXXX name. XXXX emailed for me to sign the documents that XXXX created and mentioned that they were changed to XXXX 's name. I signed the documents but XXXX emailed again shortly with signature request of electronic disclosure. I asked XXXX under which loan number did she need me to sign as I was sent 2 different loan packages by XXXX. XXXX sent loan number and I signed all documents requested by XXXX that were original sent by XXXX and still under XXXX 's name. XXXX emailed @ XXXX on XXXX/XXXX/XXXX that loan application has been submitted to underwriting. I made sure to ask XXXX if she included with application to underwriting the corresponding proof of payments to creditors. XXXX confirmed. On XXXX/XXXX/XXXX, at XXXX, I sent XXXX XXXX XXXX XXXX & XXXX XXXX screenshot of the collection that was removed from XXXX XXXX due to payment that was made the previous week. XXXX emailed at XXXX ; XXXX that the disclosures were resent to with a request to resign and send back. On XXXX/XXXX/XXXX @ XXXX, XXXX emails that she needs the signed disclosures as the underwriter was requesting verification of employment. I emailed XXXX @ XXXX, XXXX/XXXX/XXXX, that I do n't know what is going on on their part but I had signed everything XXXX sent along with everything previously sent by XXXX as requested by XXXX . I also mentioned at that time that all the documents she sent me continue to read with XXXX XXXX ' name on them and this may be the issue she is having with recovering documents. XXXX emails @ XXXX, XXXX/XXXX/XXXX, with subject line reading ( my last name ) UGHH and Thank you in text. XXXX XXXX, XXXX, XXXX, I sent XXXX a Home Insurance quote from XXXX XXXX and she emailed that she was waiting for underwriters response. XXXX XXXX, XXXX, at XXXX, XXXX left a voicemail stating underwriter sent loan for another review. I called XXXX at XXXX but no answer. XXXX called back at XXXX and stated that underwriter declined application because it seemed that I was trying to purchase home as a investment property because it was only 3 miles from my wife 's home. XXXX also went on to say I would be able to buy it with 25 % down as investment purchase. I asked XXXX to confirm which one was it, declined or approved. XXXX then says it was going to be declined for collections, unclear credit history post bankruptcy, and unable to verify residence and asks what our intentions were with the current home we reside in. I went on to explain that my wife would sell if needed and that it would be to her mother and that if I was guided in the right direction from the beginning, we could have put it up for sale from the start. XXXX says it was too late for that and goes on to say that it just does n't look good because we are married, file joint taxes and are going to have 2 owner occupied residences and continues to say if I was going to live in one and her in the other. I said yes, as it is for the children to go to Top 10 schools that we are purchasing the home. XXXX goes on to sarcastically say you are going to live in another home apart from your wife, that would seem that your getting divorced. I asked XXXX if my personal profile was a contingency in this loan approval and defensively responds that personal information has no bearing on decision and continues to pick at the separation tactic and I assume she wants me to say that we were going to separate so I played into it by saying yes. XXXX strongly says that if that 's is the case, then that changes everything because now you have to figure different factors, and assumptions of obligations. I then tell XXXX that these are her assumptions of my personal life as she said it has no bearing in approval. I tell XXXX that they are just looking to decline approval because I submitted the complaint to XXXX XXXX. XXXX raises her voice and states that the underwriting process is XXXX and that it figures the factors tells them to deny, approve, or proceed with caution and especially look at post bankruptcy cases. I told XXXX that it did n't seem to be an issue back in XXXX XXXX when she preapproved me initially nor did it tell XXXX to deny or proceed with caution in XXXX XXXX. I told XXXX that we would not be here if XXXX had actually used the current credit pull from XXXX XXXX and I would have not been led to believe I was approved, I would not have continued to place offers on homes as XXXX advised, I would not have hired an attorney at {$1000.00} for self representation of sale, I would n't have spent {$500.00} on home inspection/radon test, would not be loosing {$2500.00} EM for not fulfilling contract, and I definitely would not have had to place my family in this very stressful and saddening situation especially during the holidays. I asked XXXX to please try her best in getting this approved for my family. 
XX/XX/XXXX, I received an email from my attorney asking how I would like to proceed since she had received a copy of the denial letter that Associated Bank sent in the mail to my home. I requested XXXX to send me a digital copy of the letter they sent to attorney. I copied XXXX XXXX and XXXX. I read the letter that did not state what XXXX said I was being declined for. I have all documents, and all email, texts if needed for resolution.

Company response to consumer: Closed with explanation