Consumer complaint received 2019-10-11
Product: Mortgage — FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: Freedom Mortgage Company (OH)

On XX/XX/XXXX, I contacted my current mortgage servicer, Freedom Mortgage ( FM ) to see about an equity loan. In XXXX, FM contacted me repeatedly to do an equity loan. They told me in XXXX that my debt-to-income ratio was too high and I would need my husband on the loan. I vowed to change mortgage companies as soon as I could. However, FM contacted me earlier this year again about doing an equity loan. My husband and I had been actively looking for a way to consolidate our debt, so we canceled our XXXX XXXX application and went with FM. 

I have at least {$50000.00} of equity in my home. I have owned my home since XXXX, I have had no delinquent payment history on my credit report in 13 years. I was denied the loan based on " not having consistent income in XXXX and XXXX ; '' despite the fact that I could show that I did, in fact, have consistent income. 

My husband and I applied jointly. Prior to pulling a hard credit inquiry and starting the application, I told XXXX XXXX with Freedom Mortgage that I have been a solo practicing attorney since XXXX and that I also work for my husband 's XXXX  ( XXXX ) since XXXX. I specifically stated that I make less through the XXXX. My husband also has been working for the same XXXX XXXX since XXXX. XXXX told me that he would only use my income from the XXXX, and if he needed me to provide information on my income as an XXXX, he would let me know. It all sounded promising, so my husband and I invested in making small improvements to guarantee that our house would appraise at the amount which we needed. 

My XXXX score was XXXX, my husband 's was XXXX. We provided our tax returns from XXXX and XXXX. We also provided pay stubs for XXXX. On XX/XX/XXXX, XXXX told me that I could not be on the loan for the home because I could not show consistent income in XXXX and XXXX as I do not have w-2s for the XXXX XXXX since I am a sole XXXX. I asked why I could not provide balance sheets and business account statements. I was even willing to provide redacted copies of retainer agreements. 

XXXX told me none of what I offered would be sufficient, that it HAD to be W2s. I later followed up and provided w-2s from the other jobs I have held in XXXX. I also was looking for W2s from XXXX. As I stated to XXXX, since I am a solo XXXX ( which means feast or famine ), I maintain various contracts as appointed counsel along with e-discovery positions. I also offered to provide the full tax returns with corresponding schedules so that he could see our income along with the deductions we were able to claim. XXXX told me that the information that I was offering still was not enough, that only w2s will show consistent income. He stated that my husband would have to be on the loan alone ... then stated to me that my husband would have had to been on the deed for 12 months prior to the application. XXXX knew full well that I purchased my home before I met my husband and that he would not be on the deed. 

My claims : Income discrimination : XXXXFreedom Mortgage would only accept W2s knowing that I am mainly a solo practicing attorney, and, as such, I would not have W2s for my solo practice. We told Freedom Mortgage that I was a solo XXXX from the beginning. Upon providing my pay stubs from the XXXX, my husband let XXXX know that I am XXXX versus a full-time permanent employee and that, because the XXXX just started being in the black as of this year that is why my payment history isn't beyond XXXX. After providing tax returns and pay stubs, I offered to provide further information to prove my income for XXXX and XXXX and XXXX/Freedom Mortgage would not work with me. I understand that with FHA loans there is no minimum income amount and the history only need be for the previous 12 months. Last year, it was " your income is not sufficient, you need your husband on the loan. '' This year it's " you can not prove consistent income. '' So, last year, my income was consistent. But this year it is not?

Racial discrimination : I believe race has a part to play in this because it is well-known that minorities are given more difficulty in trying to obtain loans. Here, Freedom Mortgage has no good reason to deny me from being on the loan of the home which I have maintained with no delinquent payments for the past 6 years. I am simply trying to do the same thing that many other homeowners do - utilize the equity in my home to get a handle on debt. I am left no choice but to believe these issues that FM is ONCE AGAIN taking me through is based on race. 

I have also just found that my monthly payment has arbitrarily increased by {$20.00}. It is ironic that it happened right after I notified FM of my intent to file consumer complaints and I have not received any prior notification of any issues with escrow or tax increase.