Consumer complaint received 2017-04-27
Company: CITIZENS FINANCIAL GROUP, INC.
State: NY
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
ON Monday, XX/XX/XXXX, I met with XXXX XXXX XXXX, Home Mortgage Officer at Citizens Bank, XXXX NY AND ASK HIM TO RUN AN OFFICIAL APPLICATION FOR A MORTGAGE PRE-APPROVAL WITH CITIZENS BANK. 

Originally, I was A PREAPPROVED BUYER BY XXXX XXXX XXXX  (XX/XX/XXXX) and wanted to shop around so I can get a better mortgage rate. Citizens Bank or the former CCO was my mortgage loan bank up to XX/XX/XXXX, when I sold my house at XXXX XXXX XXXX XXXX NY. 

I sold my house, because it was located next to A SATELITE TOWER, which causes XXXX and XXXX, and my son was the unlucky one to get very ill with a XXXX XXXX AND XXXX IN XX/XX/XXXX, and he was living with me for three years at the house next to the satellite tower. 

I applied for the Citizens Bank mortgage on XX/XX/XXXX, because I was a perfect customer with NO LATE PAYMENTS FOR three (3) and a half years with Citizens Bank. Thus, during this time, life happened, I was unemployed for a short time, and I had turn a few credit cards in derogatory accounts WHICH ON XX/XX/XXXX were in a Paid off condition, less than the original amount but appear not so good on my credit report. I also have SIX FIGURES STUDENT LOANS IN REPAYMENT. THUS, my tri-merged CREDIT report, after I applied with XXXX XXXX, showed a middle score of XXXX, sufficient for Citizens Bank, or ANY BANK to prequalify me for a mortgage. ANY BANK WOULD LOOK FOR A SCORE HIGHER THAN XXXX.

I was VERY FORWARD AND HONEST with XXXX XXXX, when I told the Citizens MORTGAGE Officer that I have a six(6) figure student loans in the Income Based Repayment Plan. I ASKED HIM HOW THE CITIZENS UNDERWRITER WILL CALCULATE this TOWARD THE INCOME-TO-DEBT RATIO - ONE PERCENT OF ALL loans toward, OR THE AMONTHS that I presently pay, which are REPORTED ON MY CREDIT REPORT? In XX/XX/XXXX, SAME BANK CITIZENS BANK issued my MORTGAGE under the condition  of  $XXXX payments on my six figure student loans, total amount not so different than my present student loans. 

I was a single mother for twenty years, working three jobs, raising my children alone on FS, but achieving THREE XXXX XXXX, AND TWO XXXX XXXX, all at my expense of six figure student loans. I also speak four(4) languages and  presently, I am a XXXX XXXX XXXX. 

But the trouble of getting a MORTGAGE for me is: I do repay my student loans under INCOME BASED REPAYMENT PLAN. Student Loans Income Based Repayment Plans were a Bill, which is NOW A LAW, accepted BY THE CONGRESS during the President Obama's term. Student loans are FIXED INCOME RATIO AT 10% OR 15% and provable with the Income Based Repayment Plan Document issued by XXXX XXXX. Thus, the MORTGAGE companies, Banks, etc. would UNFAIRLY AND WRONGLY TAKE 1% of the income-to-debt ratio student loans of any student to DISQUALIFY HIM/HER against THE OPPORTUNITY TO GET A MORTAGAGE. 
This is the case with Citizens Bank as well as they follow the XXXX XXXX  guidelines in underwriting. 

XXXX XXXX most recently changed the unfair 1% rule to what it should be: as reported on the student credit report. FOR EXAMPLE: MEDICAL PROFESSIONS, DOCTORS, ETC. ARE EVEN more PRIVILEGED THAN ANY OTHER profession- THEIR STUDENT LOANS ARE NOT COUNTED AT ALL( WHICH I'D ARGUE IS A DISCRIMINATION BY CREDIT WORTHNESS SINCE OTHER PROFESSIONS DO NOT HAVE THE HIGH SALARIES OF THE M.Ds!!!)

I copy the email by the Citizens Mortgage officer. It appalls me THE INDIFFERENCE NOT ONLY TO MYSELF BUT TO MILLIONS OF FORMER STUDENTS. It also DEMONSTRATES ABUSE OF POWER when one is in the position of the  MORTGAGE OFFICER WHO PLAYS WITH THE DESTINIES THE FORMER HONORABLE STUDENTS; SIMPLY THE CITIZENS MORTGAGE OFFICER MAKES HIS OWN  RULES AGAINST THE LEGAL, LAWFUL RULES!!!!!

"RE: XXXX XXXX(....)_Please consider the copy of the article and OFFICIALLY APPROVED ME FOR A MORTGAGE WITH CITIZENS BANK WITH MY SCOREE OF XXXX  
 
XXXX, XXXX XXXX XXXX XXXX XXXX(.......)  

Today at XXXX XXXX   

Hi XXXX did look at the XXXX XXXX guidelines for the student loansand YES the have changed the way for us to calculate the payments. Unfortunately, we still have to go by our current guidelines until the new ones are reviewed and we accept them. I dont have a date as to when that will happen. I do understand that you want to get into a home as soon as possible but the way I have to calculate your payments on the student loans raises your debt to income ratio outside the qualifying parameters.

As soon as we incorporate the changes I can move forward with your application. XXXX XXXX XXXX  Mortgage Loan Officer
 Home Mortgage XXXX

NMLS# XXXX
 Citizens Bank
 XXXX XXXX XXXX XXXX, NY   XXXX


Mobile: XXXX-XXXX-XXXX

Facsimile: XXXX-XXXX-XXXX 
 XXXX  
 www.XXXX.XXXX

www.XXXX.XXXX/XXXX" END OF EMAL.

 When the Mortgage Insurance Corporation or PMI, or XXXX XXXX, most recently, in XX/XX/XXXX REGULATED AGAINST the FRIVOLIUS 1% with NEW UNDERWRITING GUIDELINES, declared that there are new guidelines this has ment to be applied on XX/XX/XXXX and the old rules to be ruled unlawful.   

Citizens Bank is brutally ignoring the XXXX Guidelines even those apply to Citizens Bank as XXXX XXXX  is the Investor for Citizens Bank. 

XXXX XXXX is following the guidelines; how could Citizens Bank is an exception?
More importantly, I was refused a formal ANSWER or Denial of my formal Paper application. WHY? Because the Citizens Mortgage Officer could NO LEGALY backup his decision thus hoping that I will go away without perusing my rights! 

Specifically in & XXXX XXXX states that student loans in repayment WILL NO LONGER BE CONSIDERED AS 1% OF THE TOTAL STUDENT LOAN TO CALCULATE THE MORTAGAGEE INCOME-TO-DEBT RATIO.  INSTEAD, BANKS MUST TAKE THE CREDIT REPORTED MONTHLY AMONTS of the STUDENT LOANs when eligible for INCOME BASED REPAYMENT PLAN OF the STUDENT TO QUALIFY HIM/HER FOR A MORTGAGE.

I am very disappointed after receiving the email from the Citizens Bank Mortgage OFFICIAL, WHO REFUSED TO PROCEED WITH MY MORTGAGE APPLICATION FOR PRE-APPROVAL, EVEN THOUGH XXXX XXXX PROCEED WITH A FORMAL PAPER APPLICATION FOR PREAPPROVAL. XXXX XXXX RUN/RUIN MY CREDIT SO HE CAN PREAPPROVE ME. THEN, XXXX XXXX NEVER PROVIDED ME WITH AN OFFICIAL DESISION BY CITIZENS BANK OF PRE-APPROVAL OR DENIAL. 
UNSTEAD, XXXX XXXX UNFORMALY DENIED MY APPLICATION WITH CITIZENS BANK, emailed me that he will CONSIDER  THE OLD RULES OF 1%, even those rules are UNLAWFUL AND UNRULED BY XXXX AND XXXX XXXX.
I disagree to be unfairly and unlawfully discriminated by credit worthiness, and more so since Citizens Mortgage Officer refused to follow new changes of XXXX  and THE LAW.
My BIGGEST CONCERN IS THAT MANY BANKS WILL ELECT TO CUT OFF FORMER STUDENTS OF THE OPPORTUNITY TO GET MORTGAGES, EVEN ESCAPING THE NEW REGULATIONS.

Company response to consumer: Closed with explanation