Consumer complaint received 2020-03-19
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: WA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
I am the XXXX for the seller in a transaction wherein the buyer made loan application to Bank Of America. Seller relied on B of A 's preapproval letter and email verifying documents received and reviewed by lender dated XXXX in accepting buyer 's offer. Loan officer stated in writing " these buyers are well qualified and I have reviewed all credit, income and assets. '' Beginning on XX/XX/XXXX I repeatedly phoned, emailed and texted the loan officer asking when was the CD going to go out to buyer. I received NO RESPONSE. XX/XX/XXXX, the loan closer dept emailed escrow, " provide all your escrow fees to balance CD for collaboration today ASAP. '' On XX/XX/XXXX, I received an email from buyer 's Realtor in which the buyer requested she forward it to me. It stated that the buyer was terminating the purchase transaction because lender was denying their loan. The required 22A financing addendum of providing a denial letter from lender was not provided so I replied to buyer 's Realtor that it is required. On XXXX delivered a 90I Termination Notice and Form 50 requesting all of the earnest money be refunded to buyer. I emailed various B of A loan dept representatives copies of the preapproval letter, email and the request by the loan closer to escrow stating either you misrepresented these buyers qualifications or these buyers ARE qualified. No response. XX/XX/XXXX, I receive a B of A denial letter via the buyer 's attorney. It was a denial only to the wife borrower stating she was denied the loan because of too large a debt to income ratio. The loan application was made by both buyers on the PSA, husband and wife. The purchase documents and the 22A Financing addendum were identified as both husband and wife as purchasers and borrowers. This denial letter is a blatant, willful misrepresentation of denying the buyers ' loan. It selects only the wife borrower and ( perhaps ) justly states that were she the only buyer on the {$500000.00} 2ND HOME loan, SHE could not qualify due to not enough income to cover the debts of her 1st home loan and all other debts in her name. This was a way for the lender to try to satisfy the buyer in providing a denial letter for the sole purpose of BUYER MAKING A CLAIM FOR REIMBURSEMENT OF THE {$6500.00} earnest money in full! It is my position that these buyers were and still are qualified to close the loan they originated. I believe that buyers made a choice to not move forward with the closing 8 DAYS BEFORE CLOSING and that it had nothing to do with not being qualified based on all evidence from B of A. Buyers also therefore made a choice to breach the Purchase and Sale Agreement and to attempt to breach the Financing Addendum signed contract stating that in the event of buyer default, they forfeit all the earnest money. The  buyers ' choice to terminate 8 days before closing left my XXXX year old clients who are not in good health having to terminate the purchase agreement which was contingent upon the closing of the sale of their home ; live in a home filled with boxes as they were to move in to their new home within 10 days ; and having to hire a lawyer to fight with the buyer over the earnest money disbursement. Buyer chose not to be a responsible party to their own contractual obligations and have cost my sellers more damages than the {$6500.00} in earnest money. I have also incurred {$29000.00} in lost commissions. My complaint is that B of A willfully, negligently, provided buyers with a false denial letter.

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