Consumer complaint received 2016-12-08
Product: Mortgage — Conventional adjustable mortgage (ARM)
Issue: Application, originator, mortgage broker — 
Company: BANK OF AMERICA, NATIONAL ASSOCIATION (NV)

I recently applied for a residential mortgage with Merrill Lynch Home Loans. I had been employed with Merrill Lynch from XX/XX/2000 to XX/XX/2009. During that time I maintained XXXX mortgages with them that started out at almost {$900000.00} and until a few months ago when I sold XXXX of my homes is down to a little more than {$400000.00}. During those XXXX to XXXX years I never missed or was late with a payment. My credit score has always been in excess of XXXX and my income has stayed about the same. I recently decided to purchase another home a few blocks from where I currently live in order to downsize as I do n't need a home as large as the XXXX I have now. My intention is to sell my current home after I move. I applied with XXXX lenders to see where I would get my best deal, Merrill Lynch and XXXX Bank. I also entered into discussions with several other lenders to see what type of programs they have and have provided them with information about my financial positions to see if I was a good candidate for their preferred programs. I received an approval from XXXX Bank and was assured by all the other lenders that there would be absolutely no problem in approving me for their mortgages. However, Merrill Lynch Mortgage had refused to provide me with a mortgage. I provided them with my last XXXX years tax returns as well as an income statement for this year but they did n't request verification of any other financial records. I told them about my brokerage accounts in excess of a XXXX and a half as well as a rental home I own free and clear but they did n't ask for any verification of that information. A few days later I was told that their underwriting did not approve me because of a {$60000.00} loss on a XXXX last year as well as a XXXX % debt to income ratio. When I explained that this was an investment in an oil well that was being drilled and those costs are deductible on my taxes I was told that they have strict guidelines by the federal government that dictates who they can lend to. When I asked what guidelines they were referring to I was told XXXX. As I understand XXXX XXXX Subtitle B addresses the minimum standards for mortgages, there is no mention of a debt to income ratio or for that matter, any mention for underwriting guidelines except " make a reasonable and good faith determination based upon verified and documented information that the consumer has a reasonable ability to repay all loans on the same dwelling and applicable taxes, insurance ( including mortgage guarantee insurance ), and assessments. '' Because of their ambiguous responses to my questions and the fact that many other mortgage companies are willing to finance me, I immediately became suspicious of their motives. As I 've experienced retribution from this firm in the past as a result of me leaving, I feel that their determination was based on other reasons than what they 've expressed. My concern is that they acted in a discriminatory manner where they had no problem financing XXXX homes while I was employed XXXX but now that I 'm with XXXX they refuse to finance XXXX homes with a lower amount of debt they financed before. I believe this action warrants a complete investigation into this matter as well as an investigation into the recorded telephone conversations I 've had with their representatives. If they 're allowed to refuse mortgages based on an arbitrary " company policy '' and hide behind nonexistent federal guidelines, than they will continue to discriminate, for any reason, against those qualified families that go to them for help in purchasing their home. If they insist on referring to federal guidelines, they need to be reminded of those real guidelines that protect the consumer from discrimination in any form.