Consumer complaint received 2023-08-22
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: JPMORGAN CHASE & CO. (FL)

I was applying for a loan with Chase Bank on a primary residence. There was me, my wife, and my parents as non-occupant co-borrowers. Chase made several written financial commitments to us at the start of the process which I believe led them to find a way to back out of this loan. Details are provided below. 7 days before closing they said we did not qualify due to the DTI ratio. However, they were incorrectly calculating those numbers. I believe this was intentional.

Chases ' DTI calculations had several errors. Chase was not counting dividend income that had 5 plus year history for my parents. For my income, Chase did not back out XXXX of depreciation on investment properties. These errors greatly lowered our income calculation. These are very common practices and standard operating procedures. It was clear that the loan officer wouldn't understand how either of these worked as I had to explain some very basic concepts to him. Since this fell apart I have submitted all docs to 3 other lenders. All 3 agreed Chase was not doing the math correctly and our DTI was well under the needed ratio. 

I believe they wouldn't calculate these correctly because they weren't going to able to close in time which triggered a payment from Chase of {$20000.00}. Chase sent me a written guarantee of a " 21 Day Purchase Closing Guarantee '' which if they did not meet triggered a payment of XXXX. Or perhaps they just didn't want to close a loan at a 6.99 % rate as the rate had gone up since locking. No other lenders have calculated the DTI the way they did ( intentionally ignoring income and deductions ). 

After it fell apart the loan officer recommended I work with a different loan officer and do a VA loan under my parent 's name as my father is XXXX The agent specifically recommended that we state the house would be my parent 's primary residence even though this was and is not true. This action constitutes fraud and we did not pursue it. It was a false lead the agent was trying to get us to pursue to get them out of their commitments. 

This incompetence ( intentional or not ) cost me a XXXX percent on my interest rate ( roughly {$250.00} a month for the life of the loan ). As I had locked in at 6.99 %. and will have to close at 7.5 % with a different lender due to a rate increase. It also cost me a XXXX payment from Chase, as they had a written commitment to honor their program that if I used their agent 's recommendation and closed with them it triggered a XXXX for this home. 


Additionally, mistakes made by the loan XXXX during this process were SS # 's were inputted incorrectly delaying the initial pre-approval letter. The purchase address was inputted correctly and I was offered a XXXX XXXX based on this incorrect address. 

In summary Chase 's representative : - Incorrectly calculated the DTI- did not understand dividend income - did not understand deprecation on investment properties- incorrectly inputted SS # - incorrectly inputted the address of the home being purchased- suggested an illegal loan activity This cost me $ XXXX and several XXXX dollars from fees paid and payments owed.