Consumer complaint received 2015-07-24
Product: Mortgage — Conventional fixed mortgage
Issue: Credit decision / Underwriting — 
Company: Eagle Home Mortgage, LLC (OR)

On XXXX XXXX, 2015 I received a pre-qualification letter for a mortgage loan from XXXX XXXX XXXX in XXXX, OR. They are a subsidiary of Universal American Mortgage company. They checked my credit report, taxes, and other factors related to my finances. At the time I was told that I would be approved for a {$350000.00} conventional loan with 20 % down. This was exciting news as we have been needing a larger house to fit our growing family. We found a home and made an offer of {$350000.00} which was accepted and we are currently under contract. 
As we drew closer to the actual closing date for our home ( XXXX XXXX, 2015 ) I started to get an uneasy feeling based on the fact that I was n't hearing any feedback about the actual closing details. I contacted a Branch Manager who informed me that my file was still in underwriting and had been sent to " Senior Risk Management ''. I asked if this was typical and he indicated that it was not. I asked if I should be worried or start looking for another loan ( this is XXXX days before our closing, too late to look for another loan or receive an appraisal which takes about XXXX weeks in my area ). He said he would understand if I did. When I asked what the issue under scrutiny was he informed me that it concerned my student loans. I am a XXXX so I have a substantial student loan balance and am currently under an Income Based Repayment ( IBR ) plan with my loan servicer. When I was pre-qualified for this loan the issue was raised of whether my IBR would be used to calculate my debt : income. XXXX XXXX XXXX sells all of their loans on the secondary market so they consulted their guidelines. According to their guidelines, in my circumstance they initially determined that they WOULD use the IBR rather than the alternative of 1 % of my {$260000.00} student loan balance. This was the basis for offering me the pre-qualification, which was made with full knowledge knowledge of my student loan balance and BEFORE I even had supplied information about my actual IBR. The figure used as an estimate was actually about {$500.00} more than my actual IBR payment but it was not the {$2600.00} ( 1 % ) alternative. 
When I asked why this was an issue now since it had been examined during my initial application I was never given a clear answer. I was told that the investor ( XXXX ) was insisting that the 1 % figure be used instead of my IBR amount when figuring my debt : income. I was NEVER informed at any step in the process that this was a possibility. My Loan Officer at XXXX XXXX XXXX specifically requested guidance from loan support about whether the IBR figure could be used in my pre-qualification and she was told that it could be ( I have copies of internal e-mails detailing this entire process she went through to confirm this ). Had I known that there was a possibility that this was not the case, I would never have made an offer for {$350000.00} on a house and entered a purchase contract. I would not have given notice on the home I 'm living in, putting my family of XXXX at risk. I urged XXXX XXXX XXXX to honor the pre-qualification even if they could not sell the loan and extend me the loan on my qualified property as agreed. In the end they chose to deny the loan and have not provided a reason. They chose to do this on my closing day leaving me in a precarious position where I would violate the terms of my purchase contract which I entered in good faith based on their assurances I could obtain a loan on a qualified property. Now I am left in a position where I have to attempt a renegotiation with my seller, seek a new loan, find a way to keep a roof over my family 's heads and continue to live under a considerable load of stress. 
In short, XXXX XXXX XXXX pre-qualifications are completely meaningless and will expose families to risk.