Consumer complaint received 2024-10-12
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Application denials
Company: STATE EMPLOYEES CREDIT UNION (NC)

Dear Consumer Financial Services, I am writing to formally express my concerns regarding the handling of my mortgage application with SECU. I believe my case exemplifies a lack of transparency and adherence to proper procedures.

Initially, I submitted my investment mortgage application and provided all required documentation to SECU. After a thorough review, I received an official approval letter. However, during the loan process, SECU requested additional documentation concerning my deposit. I complied by submitting my offer letter and a 401 ( k ) statement from my employer. I also placed the necessary funds in my account for the requested duration. 

A week before my scheduled closing, I was shocked to receive a denial of my loan based on the inability to verify my income. Given that I had previously submitted my W-2s, the last XXXX pay stubs, XXXX pay stubs, and a tax transcript, I sought clarification on why this verification was an issue at such a late stage, particularly since it should have been addressed during the pre-qualification process. 

The bank informed me that the verification of employment contained inaccurate information for XXXX. I requested to review this document, as all other income sources matched and the discrepancy seemed to stem from a clerical error on a manually filled form. When I asked to have a loan officer review the denial, I was then informed of another issue : my relationship with the seller, as I was purchasing XXXX investment properties from my boss. SECU claimed that this presented a red flag, despite my right to purchase from anyone offering the best price. When I requested a copy of the bank policy that justified this decision, I did not receive any information.

The lack of communication, clarity, and consistency from SECU has caused significant distress and disruption to my plans. I believe that I have met all requirements and that the late denial of my application is not only unfair but may also reflect potential discriminatory practices.

I would appreciate your assistance in reviewing my case and the actions taken by SECU. I seek a resolution that ensures fair treatment and adherence to appropriate lending practices. 

Thank you for your attention to this matter. I look forward to your prompt response. 


Follow up : Regarding Second application I am writing to formally address an issue I have encountered during my recent attempts to secure a loan for investment properties, which I believe may reflect discriminatory practices within your institution.

After my initial loan application was denied, I received a call from a manager suggesting I pursue financing through another institution. In light of this, I have engaged a mortgage broker, albeit with higher interest rates, as I am committed to obtaining the necessary assets.

Following the advice of the new loan company, I worked on improving my credit score to meet their requirement of at least XXXX. I initiated a loan consolidation using my existing HELOC with SECU and subsequently applied for a new HELOC through my local credit union branch. I was approved and signed all loan disclosures without issue. 

However, after the appraisal was completed, I was informed that my loan was denied by the XXXX XXXX XXXX ( XXXX ) due to an inability to verify my income. I found this reasoning perplexing, as I had provided all requested documentation. When I asked for clarification, the loan officer could not provide specific details and noted that it was unusual for the XXXX to deny the loan under these circumstances. 

This experience raises serious concerns for me regarding potential discriminatory practices. I would like to understand how this situation aligns with your institution 's guidelines for loan approval. Furthermore, I am interested in knowing how many other members may have faced similar treatment. 

If my concerns are misplaced, I kindly request clarification on the processes involved in loan funding and the specific reasons for my denial. I appreciate your attention to this matter and look forward to your prompt response.