Consumer complaint received 2016-10-13
Product: Mortgage — FHA mortgage
Issue: Application, originator, mortgage broker — 
Company: M&T BANK CORPORATION (MD)

This is a complaint against M & T for questionably unethical practices, untimely processing of the mortgage loan, and conflicting information presented to writer/ XXXX XXXX XXXX by XXXX XXXX ( loan officer/XXXX ID # : XXXX, assigned to work with writer ) and those involved in processing the mortgage loan for XXXX XXXX XXXX XXXX. 
On XXXX/XXXX/16 I was approved by M & T for more house, at a larger loan amount ( {$350000.00} ), with less rental income then XXXX XXXX XXXX XXXX XXXX XXXX XXXX processed that loan ). Yet, per report from XXXX XXXX, underwriting needed to see rental income high enough for me to be approved for XXXX XXXX XXXX XXXX. This is contradictory. From the chart below you can see, a summary of the previous property that I was approved to purchase XXXX XXXX XXXX XXXX ) vs. the current property ( XXXX XXXX XXXX XXXX XXXX. As noted above, the previous property had rental income that was lower then XXXX XXXX XXXX XXXX and the property required a higher loan, yet I was still approved, for the previous property XXXX XXXX XXXX XXXX XXXX. So it is unclear why this current loan would be rejected, if it is : less house, lower purchase price, more rental income, with a/my similar credit profile. ( The closing disclosure can be provided as proof, for approval of loan for XXXX XXXX XXXX ). 
Chart : XXXX XXXX Place Loan approved : {$350000.00} Rental Income : {$3700.00} Multi- family : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX review : {$310000.00} Rental income : {$4000.00} Multi-family XXXX unit : XXXX units ( XXXX storage space/room, XXXX no bathroom or kitchen ) If the seller would have agreed to sign the closing documents on the day of closing XXXX/XXXX/16, for XXXX XXXX XXXX the deal would have gone through for the previous property. 
Furthermore, I warned XXXX about the FHA guidelines which now counts school loan repayments, despite being in forbearance for more than 1 year. I mentioned to XXXX ( before signing the contract ) I 'm concerned that the M & T loan for XXXX XXXX XXXX XXXX would n't work, due to my DTI ( debt to income ratio ) and school loan payments being included. He expressed that if the required loan documents were submitted before the FHA guidelines changed ( before XXXX/XXXX/16 ), then I could be evaluated based on the old FHA guidelines, which would lead to favorable outcomes for this loan approval. This was conveyed to the seller, as well, therefore the seller and I expedited signing the contract with this understanding and all documents were submitted ( XXXX/XXXX/16 ), by writer, prior to the FHA guidelines change. 
Writer requested for the untimely and misleading information to be addressed at a higher level, and writer corresponded with XXXX XXXX ( M & T Vice President ). XXXX XXXX expressed that based on my DTI the loan for XXXX XXXX XXXX XXXX should have " never gone to processing ''. If writer received a rejection of the loan in a timely manner, writer could have saved significant amount of money ( by not paying for an appraisal, termite inspection, or home inspection ). 

Due to the issues and concerns noted above, as a resolution I am requesting : for the FHA case number assigned to writer for XXXX XXXX XXXX XXXX, to be investigated, due to conflicting reports of the loan status from XXXX XXXX and XXXX XXXX to receive reimbursement for the appraisal fee for XXXX XXXX XXXX XXXX, because per XXXX XXXX 's report " this loan ( for XXXX XXXX XXXX XXXX ) should have never gone to processing '' ; if the loan was not inappropriately sent to processing, writer would not have paid M & T for an additional appraisal for the home for all of the claims above to be investigated by the Federal Reserve for all to the claims above to be investigated by the Consumer Financial Protection Bureau