Consumer complaint received 2024-08-28
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Applying for a mortgage or refinancing an existing mortgage — Delays in the application process
Company: DISCOVER BANK (MI)

On XX/XX/XXXX, we applied with Discover Home Loans to obtain a home equity loan. We already had an existing home loan with them and we looking to take out more money based on my XXXX XXXX XXXX XXXX XXXX XXXX XXXX. I am not receiving my full salary with short-term XXXX benefits ( only getting XXXX XXXX % ) so we wanted to be proactive in borrowing more money from our home to pay any outstanding bills. We were approved for the loan and submitted all the paperwork to Discover Home Loans on XX/XX/XXXX. On XX/XX/XXXX, we received an email from the Loan Processor, XXXX XXXX, asking for the insurance company to add Discover to the declaration page. This was submitted to XXXX on XX/XX/XXXX. The document was rejecting stating that the loan # was not included ; however, I doubled checked it and replied back to XXXX email  letting him know that the # was included and to look again. On XX/XX/XXXX, I received another email stating the # was not included on the declaration page. This was completely absurd. I emailed XXXX back on the XXXX with an image of the document, circling where the # was added ( the loan # was added to the declaration ; it is on page 2 of 3 of the declaration ). Also, prior to receiving this email, I spoke to XXXX from the contact center on Friday, XXXX XXXX, and she confirmed that she could see the number on the page. 

I never received a response from XXXX after my email on the XXXX, instead on XX/XX/XXXX, I received another email asking for the insurance to be updated. Completely ridiculous. So, I called into the call center again and spoke to XXXX who informed me that Discover had everything, except now they still need to verify my employment. I informed XXXX that my employer uses The Work Number for work verification and provided him the information via phone ( I gave this information to another associate at Discover the week before, so I'm not sure why there is a disconnect within their center ). I followed up with an email to XXXX with the same information and asked for an acknowledgement of my email since I wasn't getting anywhere with him and we were almost a month into the loan processing timeframe. 

On XX/XX/XXXX, I received another email from XXXX asking me about the employment verification. After getting the email, I immediately called Discover Home Loans and finally spoke to XXXX. He stated that he was reaching out to an HR employee at my employer who was not responding to him ( I gave him her name previously but later found out that my employer used the 3rd party ) ; I told XXXX that he would have to use The Work Number for the verification ; XXXX said that he did use their information and he was told I was on leave which I confirmed was correct. I previously communicated this information to XXXX in my email on the XXXX and I informed the other folks previously during my calls into the center. After our call, I emailed XXXX on XX/XX/XXXX, stating again that I am on medical leave from work ; however, I am still employed by my employer and have been receiving short-term XXXX benefits via XXXX ( this information was previously shared with Discover ). Also, during our conversation, XXXX stated that we could move forward into the Underwriting phase which would take another 2 weeks until closing. 

To our surprise, we got another email on XX/XX/XXXX where XXXX wanted to make sure he had everything he needed to move forward with the process. He said that he had his leaders review the loan 'just to make sure no documents were missed. ' XXXX stated that, 'Since we spoke on the phone and you had stated that the leave was extended, I would need updated documents showing the leave was extended to XXXX since the documents I have shows approved through XX/XX/XXXX. ' This was a complete shock. We were over a month into the process and now they were asking for more information. The documentation that I provided was all valid ; however, because of XXXX XXXX and the unnecessary back and forth, I needed to provide more information ( I also had to resubmit paystubs because of this delay ). I called into the call center again and spoke to XXXX sharing my disappointment and I explained to him that the way medical leaves work is based on the doctor 's recommendation ; so XXXX only approves the leave until the next doctor 's appointment regardless of the doctor saying XXXX during my XX/XX/XXXX visit. XXXX said that I needed to provide something stating my leave was approved until XXXX which I said would be my doctor 's medical notes and I did not think Discover would need that documentation since it breaks HIPPA laws. I asked to speak to a supervisor who basically reiterated the same information as XXXX. I shared my disappointment in XXXX lack of response and customer service and asked for a new processor. In the meantime, I followed up with other individuals from my workplace to help with the employment verification ( Discover also wanted to verify my last two years of pay ). 

Our loan was assigned to XXXX XXXX who asked for the employment verification again. I connected XXXX with folks from my employer and they provided her with completed documentation on XX/XX/XXXX ( the documentation verified my employment and provided Discover verification of my payroll for the past two years ). XXXX reviewed the documentation and then sent us an email requesting 'a document produced by your employer with the agreed-upon return date. ' I called XXXX and explained to her again that the leave was being managed by XXXX and that my employer would not provide a document with the date since the doctor was managing the medical leave and my return-to-work date. I explained since I had my last doctor 's appointment was on XX/XX/XXXX, the leave would be approved until my next doctor 's visit on XX/XX/XXXX, which again would still not say XXXX. I began to cry on the call because all I wanted to do was make sure my bills were being paid since I was on a XXXX  XXXX. This was not the type of stress I needed, and as an existing Discover customer, I would have thought we would have received better service. XXXX again said the same thing and I ended the call because I was at wits end. 

We did not understand why they needed to see this XXXX date in order to have our loan go to the underwriter ; they kept saying it was their policy. I questioned this policy since I'm sure I am not the only person that has been on a medical leave applying for a loan from Discover. My husband also followed up with an email expressing that this situation was unacceptable. We were more than patient and provided all the necessary documentation to move forward. Also, during all the back and forth, my husband and I both asked if there were other options under these circumstances or an exception. We were told that this was the policy and all customers must be treated the same way which we understand if I was not on XXXX XXXX and being asked to provide documentation that was non-existent. 

On XX/XX/XXXX, we received an email from XXXX stating 'Per our policy and procedures, we need a document produced by your employer with the agreed upon return-to-work date. XXXX stated that would be provided by XXXX in 5-7 business days. My leadership did advise that an email correspondence with the agreed date would be acceptable. Perhaps this could be obtained quicker? Once the proper documentation is received, I will prioritize your file and send to the next step. I apologize for any stress this has caused you. We have time to obtain that document and then your file will be submitted to Underwriting for the Underwriter to review the documentation. ' After receiving this email, I contacted XXXX on XX/XX/XXXX asking them if they knew if I could get a document showing the XXXX date for Discover and they said, 'no '. They even agreed that my employer would not provide such a document since the leave was managed by XXXX. On XX/XX/XXXX, I uploaded the new approval letter from XXXX via the Discover portal, and emailed XXXX reminding her that the letter would show the date of XX/XX/XXXX as my approval date since that is the date for my next doctors visit. Again, it would not show the XXXX date. 

On XX/XX/XXXX, we received an email from XXXX stating 'My leadership heard back from the Underwriter who stated the file can not be submitted without a return date from your employer. I am sorry because that was not the answer that you nor I wanted to hear. Due to the age of your file, I was advised to provide a deadline for the return-to- work date by the end of the day on Monday, XXXX, XXXX. If that is not provided, your file will be submitted for decline, and you can reapply when you have the required date. ' We were shocked at Discover 's audacity to bring up the age of the file since the delays started back in XXXX with XXXX. XXXX was unresponsive for several weeks, which put us in this predicament, and had XXXX done his job from the start, we wouldn't be facing this issue. 

After receiving XXXX 's email, I replied, 'Please cancel our loan request. This is completely ridiculous. ' We then received the following reply from XXXX, XXXX your request, I have submitted your file for decline. Good news, we do not report the declines to the credit bureaus so this does not negatively impact you. You will receive a letter in the mail in 7-10 business days. We will send a request to your homeowners insurance company to remove Discover as a mortgagee. Thank you for your interest in our Discover Home Loans and I wish you all the best. ' I emailed XXXX questioning why Discover is electing to use the term decline. ' This should not show as a decline since we are requesting to close out the loan application. We never received a reply back. 

Needless to say, Discover 's handling of this matter only added unnecessary stress to personal situation, and has been very disappointing. As loyal customers with sufficient income to support this loan, we expected better service, and the delays we experienced were due to no fault of our own.