Consumer complaint received 2018-06-19
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: JPMORGAN CHASE & CO. (TX)

Early in XX/XX/XXXX, I approached my personal banker, XXXX XXXX, at XXXX XXXX XXXX in XXXX XXXX, Texas about refinancing my existing mortgage to get cash out to replace the ancient and deteriorating windows in my XXXX home. He put me in touch with a mortgage loan officer named XXXX XXXX, XXXX. On XX/XX/XXXX, XXXX XXXX sent me a list of documentation he required. On XX/XX/XXXX, I sent him 6 separate electronic packages of data which included all my personal financial data - bank statements, financial statements, tax returns, IRS transcripts of the returns, business bank statements, financial statements and tax returns, Forms XXXX and XXXX, details on all the properties in which I have an interest either directly or through a business or partnership, reconciliations of tax to book income, an analysis of my annual and monthly cash flow from all sources and all the details on my XX/XX/XXXX bankruptcy including the discharge and a letter from the court stating that there are no restrictions on my incurring new debt. 

Since that time, XXXX XXXX and I have gone around and around and around in countless discussions about the errors he was making concerning his calculation of my 'qualifying income '. Just to highlight SOME of the errors ( by no means all ) : 1 ) First he decided that my XXXX income was coming from my partnership ( the names do NOT match ). When I explained to him that it was in error, he subtracted the amount from the partnership and added it back in some way that eludes me because managed to arrive at an income that was {$6000.00} LESS than it was before! 
2 ) He added the NET income of all the companies together and then SUBTRACTED 100 % the debt-service payments - in their entirety from all debts, business and personal whether or not I am solely responsible! PLUS ( a ) all the loans are being overpaid so he should be using the minimum required payment, not actual remittances which resulted in shorting my income {$7700.00} ; ( b ) his computations duplicated over {$10000.00} ( 3-year average ) in interest expense that had already been subtracted to arrive at the business net income for each year.

3 ) He refused, repeatedly to give me credit for {$3600.00} a year in partnership draws of previously-taxed monies because they weren't on the tax return. Child support isn't reported for tax purposes either, but they include that in the calculation of qualifying income and my bank statements clearly show those monies being received.

4 ) He ignored the difference between the allowable tax deduction for automobile and travel and ACTUAL costs which was several thousand dollars. 
5 ) He didn't make adjustments for prior year 's bad debts written off in current years or the non-deductible portion of meals and entertainment.

6 ) Lastly, he ignored XX/XX/XXXX documents and data simply because the return was not yet filed?! That doesn't negate the accuracy of the data! 

In short, his methods and erroneous calculations were shorting me {$30000.00} a year in actual, available cash income ( my analysis is attached as are his for comparison ).

More importantly, he continued to insist he was correct even AFTER I pointed out to him that it would be impossible for me to be earning only {$36000.00} a year since my charitable contributions average {$25000.00} a year and my medical insurance and costs are over {$8000.00} a year. Does he actually believe that I am living on a mere {$3000.00} a year for all my transportation, food and utility costs?! Again, his computations make no logical sense!

I spent WEEKS trying to show him in excruciating detail where the errors where and why they were errors. I calculated my correct income using HIS own methods but with the right numbers! I even supplied them with the rules and regulations governing tax return preparation. Nothing worked. He had made up his mind and was not about to be persuaded otherwise by anything vaguely resembling facts or evidence. Then his supervisor, XXXX XXXX, got involved and made it worse. 

I then respectfully requested a pre-authorization meeting with him, his supervisor and myself as is allowed by HMDA. I was refused by both XXXX XXXX and his supervisor XXXX XXXX even AFTER my personal banker pointed out to them that, in accordance with HMDA, I was supposed to be allowed a pre-authorization meeting with the loan officer to clarify any discrepancies or issues. 

I can provide all the correspondences back and forth, but that would take up an inordinate amount of space and time. 

I am not allowed to interact directly with underwriting, my only chance at a fair shake is to come to an accord with the loan officer that will be presenting my loan to underwriting. If he/she understands my complex finances, he/she can explain it to them. But, without that, I'm merely damaging my credit score for nothing.

This was the FOURTH time in the past 10 months this has happened to me but the first time I demanded a pre-authorization meeting and analysis. When I started my credit rating was XXXX. It is now XXXX because of all the useless inquiries. Their lack of knowledge and understanding should not be grounds for damaging me and my credit. 

This bank has denied me my rights. They have not treated me or the calculation of my income in the same fair and equitable manner as others which is a violation of HMDA and the regulations governing mortgage loan applications and related income calculations. " Fair and Equitable '' does not mean 'Identical ' - it means that each person/business is given the same opportunity to have all their documents reviewed and fairly considered in the course of the application process - an opportunity I have been denied. It means that each person/business has the same opportunity to challenge results and provide evidence of their viewpoint without being summarily dismissed and shut down as I have been. 

If I can reach an accord with a loan officer, going over things with him and showing him the details and facts until he fully understand my situation sufficiently to present it to underwriting, I will happily pay the application fee and authorize access to my credit report. But there is NO reason I should have to do so ( AGAIN ) before that understanding is reached because all that accomplishes is to hurt my credit and cost me money.

More importantly, in addition to this specific complaint, I would like the CFPB to look in to the manner in which 'qualifying income ' is being calculated by banks and underwriters. As a tax and financial professional with 40+ years of experience and multiple Master 's degrees and certifications in the field, it has, over the past 10 months and four denied loan applications, become blatantly clear to me that there is a significant deficiency in the education and understanding of tax returns and financial statements on the part of the financial professionals evaluating these documents. How can anyone accurately evaluate a person 's income from a tax return if they have no understanding of how that document was prepared and the laws that would dictate necessary adjustments to correctly and accurately determine an individual 's or business 's disposable cash flow?

They need to learn that " Fair and Equitable '' does not mean " exactly the same ''. It means " afforded the same chance to prove net worth ''.

I am attaching my calculation of what I know to be my annual income based on what I take home and spend. I am also attaching the first and second calculations from the bank. The first one had the XXXX income wrong and the second one took the XXXX income out of the partnership and added it separately, but who knows how he made his calculations because that should not have resulted in a {$6000.00} REDUCTION of income.