In theXX/XX/XXXX I was house-hunting.  We decided on a house and began the purchase process using Quicken Loans as our lender.  I was pre-approved, and we went through the process smoothly, until underwriting where my itemized deductions on my tax return caused my adjusted income to be too low and the loan was denied just before closing based on debt ratio.

I discussed this with the representative of the lender - I was working with XXXX XXXX, and I have all the emails back and forth should that be helpful going forward.  We decided to try again with a larger down-payment to lower the amount borrowed.  The seller of the house, at this time annoyed that the previous transaction had fallen through and concerned that the house was under contract for so long that they were losing other selling opportunities, demanded a non-refundable earnest payment of $XXXX in addition to the initial deposit of $XXXX for a total of $XXXX.

On XX/XX/XXXX Quicken Loans employee XXXX XXXX sent email assuring us that the loan would now be approved because of the increase in downpayment - this is NOT a standard pre-approval letter but rather reads like this:



From: "XXXX XXXX" 
Date: XX/XX/XXXX, XXXX XXXX EDT
To: "XXXX" 
Subject: QuickenLoans

To Whom it may Concern,
 
I am a Purchase Specialist at Quicken Loans and I have fully reviewed XXXX XXXX profile. I have reviewed XXXX credit, income and assets and verified that he will be able to purchase a home with a purchase price of $XXXX and a loan amount of $XXXX. We use a certified desktop underwriting system and it has approved him to make this purchase. The reason we are able to do this loan now and werent in the past is XXXX has shown additional funds for a down payment. Instead of the original down payment of $XXXX, he will now be putting down $XXXX. This makes him eligible with his debt-to-income ratio which was the problem that the first lender ran into and was not able to close the loan.  If you have any questions or concerns, please feel free to contact me.
 
Thank you,
 
 


XXXX XXXX  |  Purchase Banker
Direct: (XXXX) XXXX  |  Toll Free: (XXXX) XXXX XXXX
Cell: (XXXX) XXXX  |  Fax: (XXXX) XXXX  |  NMLS# XXXX
Highest in Customer Satisfaction for Primary Mortgage Origination" in the U.S., Three Years in a Row

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Based on this promise, I gave the seller a check for $XXXX, increasing my deposit to $XXXX.  The contract was dated XX/XX/XXXX (contract attached).

The loan again fell through in underwriting because of debt ratio.  Here is the final exchange with Quicken Loans, where they deny the loan:




----- Forwarded Message -----
From: "XXXX XXXX" 
To: XXXX XXXX ; Client Relations  
Sent: Wednesday, XX/XX/XXXX XXXX XXXX 
Subject: RE: XXXX income can't be used?e cash

Hi XXXX,
 
I have withdrawn your file, and sent your file to our client relations department as they can look into a refund.  I dont have the ability to issue checks, they would be able to explore that for you.
 
Best wishes,
 
 
Hi Team, can you please contact XXXX regarding his deposit.
 
Thanks in advance,
 
XXXX XXXX
Executive Purchase Solution Consultant
Quicken Loans
(XXXX) XXXX Direct
(XXXX) XXXX XXXX XXXX
(XXXX) XXXX Fax
NMLS# XXXX
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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From: XXXX XXXX XXXX 
Sent: Wednesday, XX/XX/XXXX XXXX XXXX
To: XXXX, XXXX
Subject: Re: XXXX income can't be used?e cash
 
 
The seller will not allow FHA.  You already know this.
 
No new information became available.  I gave my tax return immediately, including XXXX XXXX and XXXX.  I stressed that a local lender had not been able to approve the loan and mentioned my losses on XXXX XXXX as the reason.
 
Either the loan should not have been approved at the beginning, or it should be approved now.  If you cannot approve it now, then I want my money back.  I made it very clear that I was going to have to put down a large non-refundable deposit.  I was assured that my money was safe.
 
Write me a check for $XXXX and we'll call it even.
 
XXXX XXXX
From: "XXXX XXXX" 
To: XXXX XXXX  
Sent: Wednesday, XX/XX/XXXX XXXX XXXX Subject: RE: XXXX  income can't be used?e cash
 
XXXX,
 
I have given you the options that we can do. 
 
There is nothing else that we can do to get your loan through on conventional.  If the seller will not allow FHA, then I have no choice but to deny the loan. The approval was given based on up front information as new information became available it altered the income that we were calculating. Which caused this change in circumstances.  At this time we can go FHA, or remove the loan from process.  Please confirm which of those two you would like me to do.
 
Kind Regards,
 
XXXX XXXX
Executive Purchase Solution Consultant
Quicken Loans
(XXXX) XXXX Direct
(XXXX) XXXX XXXX XXXX
(XXXX) XXXX  Fax
NMLS# XXXX
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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New calculators. Sleeker design. Answer your questions in a simpler way.
Download the Mortgage Calculator by Quicken Loans today from the XXXX XXXX and XXXX XXXX.
From: XXXX XXXX XXXX 
Sent: Wednesday, XX/XX/XXXX XXXX XXXX To: XXXX XXXX
Subject: Re: XXXX income can't be used?e cash
 
 
I have written assurance from your company that this loan will go through.  It explicitly mentions debt ratio.  You've seen it yourself.  It looks very much like you've changed the rules in the middle of the game, does it not?
 
The seller won't accept an FHA.  We've already been through that. XXXX XXXX From: "XXXX XXXX" 
To: XXXX XXXX  
Sent: Wednesday, XX/XX/XXXX XXXX XXXX Subject: RE: XXXX  income can't be used?e cash
 
Hi XXXX,
 
We cannot lend with you on the loan at this time.  As a Primary residence your debt ratio does not qualify.  Our underwriter rejected using it as a second home because they know that you will be occupying as a primary.  FHA is our only option at this point other than denial.
 
Please advise which of those two directions I should take.
 
Kind Regards,
 
XXXX  XXXX
Executive Purchase Solution Consultant
Quicken Loans
(XXXX) XXXX Direct
(XXXX) XXXX  x XXXX
(XXXX) XXXX Fax
NMLS# XXXX
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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New calculators. Sleeker design. Answer your questions in a simpler way.
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From: XXXX XXXX XXXX Sent: Tuesday, XX/XX/XXXX XXXX XXXX
To: XXXX, XXXX
Subject: Re: XXXX income can't be used?e cash
 
 
No, I would not like you to withdraw the loan.  I would like you to stand by the commitment you made to me on XX/XX/XXXX.  That is what I would like.
 
Using the numbers you have, what kind of loan can I get?  Assuming conventional loan, my wife and I both on the loan, same $XXXX down.  How much can you loan me?
 
 
XXXX XXXX From: "XXXX, XXXX" 
To: XXXX XXXX  
Sent: Tuesday, XX/XX/XXXX XXXX XXXX 
Subject: RE: XXXX income can't be used?e cash
 
Just for clarity, so we dont have any miscommunication.  You would like us to withdraw the loan correct?
 
XXXX XXXX Executive Purchase Solution Consultant
Quicken Loans
(XXXX) XXXX Direct
(XXXX) XXXX XXXX XXXX (XXXX) XXXX  Fax
NMLS# XXXX
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

A referral is the best compliment! Click here to refer your friends and family. 

New calculators. Sleeker design. Answer your questions in a simpler way.
Download the Mortgage Calculator by Quicken Loans today from the XXXX XXXX and XXXX XXXX.



I lost my $XXXX and the house.  I had to wait another couple of years before I could find a house that I could afford after that financial hit and lost opportunity.

The contract is attached.  Page 5 #25 states that if I were unable to complete the transaction the deposit would be credited to the seller upon termination of the contract.  Paragraph #13 refers to loan approval - typically if you are unable to obtain loan approval your deposit would be refunded. 

They promised me that the increased downpayment would let the loan go through.  They cost me $XXXX.  I want it back.