Consumer complaint received 2016-05-11
Company: JPMORGAN CHASE & CO.
State: IL
Product: Mortgage
Sub-product: Home equity loan or line of credit
Issue: Application, originator, mortgage broker

Complaint:
On XXXX/XXXX/XXXX I applied for a mortgage pre-approval. I was denied in significant part because of the ratio ( % ) of revolving credit utilized compared to revolving credit available. There were other issues that I have been able to correct, however not the terms of a Chase second mortgage. Page XXXX of the attached file is the merged credit report from XXXX showing my revolving credit balance as {$35000.00} and available revolving credit as {$7500.00}, a utilization rate of 78 %. Also note on pp. XXXX that both XXXX and XXXX identified ( factor XXXX ) the proportion of balance to limit on revolving accounts as too high as part of the reason for the low credit score and subsequent denial. Page XXXX of the attached file from XXXX shows the Chase MTG as a home equity loan revolving with a limit of {$27000.00} and a balance of {$25000.00}, utilization of 93.4 % of revolving credit for just this XXXX account. The issue is the actual terms of this second mortgage. I took this as a HELOC in XXXX XXXX as a 10 year interest only HELOC that I was able to draw from for home improvements. It matured in XXXX XXXX, the draw period ended so it is no longer in fact a revolving credit account, as I no longer can withdraw funds from it. The terms changed and as agreed I began making principal and interest payments on the account beginning XXXX XXXX. I disputed the terms only via XXXX on XXXX/XXXX/XXXX, asking that the terms be changed. I received the results of the dispute on XXXX/XXXX/XXXX ( XXXX of attachment ). XXXX XXXX indicated that Chase verified the account as revolving with all three credit bureaus. I contacted Chase MTG. on XXXX/XXXX/XXXX and spoke with XXXX different customer service employees. They XXXX agreed that the terms had changed and this was no longer a revolving charge account. They contacted an employee in the credit reporting department and a senior employee in the mortgage/home equity department. XXXX those employees also agreed that this was no longer a revolving charge, but stated that the terms could not be changed or reported to the credit reporting agencies any differently unless I would refinance to a home equity loan. I told them that would be foolish because I was selling the home and this second mortgage would be satisfied with the proceeds from the sale. Plus, I would incur significant costs and fees associated with a refinance that were not in my best interests. In the end, while they all agreed that in fact I was correct, they could do nothing about it. XXXX XXXX of the attachment show the actual current revolving credit that I have. A total of {$4700.00} available and utilization of {$1400.00} or 31.5 % utilization. Correcting the terms of the Chase MTG by deleting the revolving notation and identification as a second mortgage would increase my credit score significantly. It is not fair that despite the facts, this company is unwilling to correctly identify the current terms of this loan, apparently for the sake of making additional profit with a refinance is just wrong. Thanks in advance for your assistance. XXXX XXXX

Company response to consumer: Closed with explanation