Consumer complaint received 2018-01-13
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: BB&T CORPORATION (GA)

On XX/XX/XXXX I made application for a {$300000.00} HELOC at a BB & T branch located at XXXX XXXX XXXX, XXXX, GA XXXX. XXXX XXXX, Assistant Vice President ( XXXX ) is the person that assisted me through this process. 

I have a current interest only HELOC in the amount of {$290000.00} with another bank which moved to a 4.50 % interest rate in XX/XX/XXXX. BB & T was/is offering an interest only rate at 2.99 % which will save me several hundred dollars per month for the 12 month promotional period. 

As a part of my application, I provided my complete XX/XX/XXXX tax return, a copy of my spouse 's Social Security benefit amount for calendar year XX/XX/XXXX ( Form XXXX ), a copy of my Social Security Administration Retirement Notice of Award which stated the date that my Social Security Benefit would begin along with the amount ( XX/XX/XXXX ), a hard copy verification of my spouse 's Pension Benefit from the XXXX Retirement System of Georgia, a copy of my current 401 ( K ) balance ( ~ {$510000.00} ) and a copy of my  current IRA balance ( ~ {$150000.00} ). I also advised that I retired from a 35 year career in XXXX XXXX  effective XX/XX/XXXX. 

My debts are a second home that carries a mortgage payment of $ XXXX/month, a charge card with a balance of ~ {$20000.00} and the {$290000.00} HELOC. Between my spouse and I, we have a charge card credit limit of ~ {$90000.00}. My spouse has a credit score of XXXX, I am at XXXX. 

It is my intent to sell our primary residence in 2-3 years therefore, I have gone the HELOC route, rather than a mortgage, as a way to finance the debt on the home. I have done this the past 3 years and have encountered no problems, up until now, in the application/acceptance process. 

However, this attempt has been denied as BB & T has indicated that my Debt-To-Income ratio ( DTI ) is too high. What has changed from my previous application periods is the fact that I am now retired. However, I spent my 32 year career saving enough to where I felt that, along with two Social Security incomes and a XXXX 's pension, our family could draw more than enough from our 401 ( k ) and IRA funds to meet whatever monthly obligations we incurred. BB & T indicates that the 401 ( k ) and IRA accounts can not be used in determining income. 

I am filing a complaint against this decision as I believe that the eRegulations, specifically Regulation Z, Appendix Q, Parts 10-26, address that 401 ( k ) and IRA balances are allowed to be considered as income if there has been a demonstrated history of consistent withdrawals from those accounts. My XX/XX/XXXX Federal Tax return showed ~ {$77000.00} in distributions from these retirement accounts. Although I had my XX/XX/XXXX Federal Tax Return with me at the meeting, it was deemed not necessary at the time of application. However, it also shows retirement distributions at a similar amount. I will not be filing my XX/XX/XXXX tax returns until XX/XX/XXXX so I do not have that document to provide as evidence for calendar year XX/XX/XXXX. But I do have statements from my IRA  showing withdrawals for that year. It is not clear to me in the regulations exactly how long this " history of withdrawals '' must be but other web-searched articles range from as little as two months to as much as two years. My record is now 3 years. 

If you consider my XX/XX/XXXX, XX/XX/XXXX and XX/XX/XXXX retirement plan withdrawals as a demonstrated source of income, then my DTI is well under what is being required. I have had multiple discussions with XXXX XXXX regarding my position. Although he is in support of my belief, he has not been able to obtain an answer from his underwriting team regarding my appeal of their decision. Because I feel that the Dodd/Frank regulations support my assertion as to my credit worthiness, I am filing this complaint with the Consumer Financial Protection Bureau in the hope that a resolution may be obtained. 

Regards.