Consumer complaint received 2017-03-07
Product: Mortgage — Conventional fixed mortgage
Issue: Credit decision / Underwriting — 
Company: SUNTRUST BANKS, INC. (MA)

I submitted an application to Suntrust Bank to do a mortgage finance with a cash back. I agreed to the credit check on XXXX. I spoke with the mortgage officer who stated my debt to income ratio was high given my student loan payment that was in deferment and because of my XXXX account. At that time I was told if you could pay off my XXXX and produce a document from the student loan company with my payment once out of deferment, we could continue with the process. I paid off my XXXX and produced the student loan payment once out of deferment. The loan officer said this brought by debt to income ratio to 46% and I was pre-approved (XX/XX/XXXX). On XX/XX/XXXX I submitted other needed documents in regards to the condo and I paid the fees for the application, $XXXX (condo questionnaire), $XXXX (appraisal), and $XXXX (credit report).  We continued to move through the process, with other requests for documents such as insurance information and the appraisal which occurred on XXXX. The condo questionnaire was completed XX/XX/XXXX. My loan went back and forth with underwriting, requesting additional documents pertaining to paystubs, bank statements etc. In XXXX, my loan changed from a primary property to a secondary home and I signed the new documents, had another credit report pulled (2nd one) and was requested to show a $XXXX reserve, which I provided within that week. The loan processor informed me this was the last step and we should be moving towards closing. He also requested my updated student loan information which I sent again XXXX (the same document submitted on XXXX) and he confirmed receipt XXXX which was the last day I heard from him. XXXX, I began to call/send emails regarding the status of my account, I received no responses/replies. I spoke to an admin who said she asked both the loan officer and processor to give me a call but neither did. I finally contacted a manager who returned my call immediately (XXXX). He looked into my application and informed me that my debt to income ratio was 65% (based on my student loan payment) and my loan was denied and asked if someone informed me which they had not. I informed him that this payment was no different than what was submitted in XXXX, then I sent him all the emails where this information was shared prior to me moving forward with the loan. I was contacted today, XXXX by the loan officer who explained that they must deny my loan because my student loan payment is variable not fixed and variable payments cannot be considered, only fixed. This same information of the variable payment was included in my documentation on XXXX. Several times, my application had been reviewed by underwriting and my student loan payment had not been a concerned. I was directly told my debt to income ratio was within the guidelines in XXXX which is why I proceeded with the application. This information was known prior to me being pre-approved and was available during the last 3 months. However, the representatives continued with my application soliciting the condo questionnaire fee of $XXXX and the appraisal fee $XXXX after having the information (reviewed by the loan officer and underwriter) that should have denied my loan in XXXX prior to paying these fees and continuing to solicit other documents from my job, condo association, insurance company as well as others wasting our time. I was led to believe my loan would be approved (I met the guidelines) which led the bank to benefit from the fees I paid in total of $XXXX which I should be reimbursed less than the credit report of XXXX. This also caused XXXX credit inquires (I expected only XXXX), which has dropped my credit score. This process was troublesome, didn't seem according to protocol in order to benefit financially.