Consumer complaint received 05-09-2016 about Mortgage (Conventional adjustable mortgage (ARM)) with BANK OF AMERICA, NATIONAL ASSOCIATION (NC).
Issue: Loan modification,collection,foreclosure

Complaint: On XX/XX/XXXX I was denied a Bank of America ( BA ) capitalization loan modification on the basis that my BA determined gross income of XXXX was not sufficient to cover the mortgage of my owner owned seasonally/weekly rented second home used only by me during the weeks it is not rented as described to BA in an affidavit submitted and signed by me. 

The home is directly on the XXXX and earns an average gross income of approximately {$5500.00} per month ( {$66000.00} per year ). 

My XXXX direct contact, XXXX XXXX, Officer ; XXXX, supervisor XXXX XXXX, initiated an appeal on her own without the consent/collaboration of myself. XXXX XXXX and I discussed the {$5500.00} not being included in the gross income calculated by the bank. In other words, on the fact that the gross income calculated was incorrect. I was to provide a legible copy of the weekly contracts I have confirmed for the 2016 season by the end of business day XX/XX/XXXX. The information was delivered on XX/XX/XXXX at XXXX XXXX. 

The XXXX initiated appeal was denied and the XXXX average gross income, substantiated by and affidavit, XXXX XX/XX/XXXX income tax filing, and future weekly rental agreements signed and " on the books '' supplied, was not considered. XXXX XXXX, ( whose supervisor is XXXX XXXX, stated that the appeal process does not consider facts omitted from the original documentation, and only verifies the information previously submitted as correct or incorrect. 

At the time of the XX/XX/XXXX denial, neither the XXXX point of contact, XXXX XXXX, nor the underwriter were aware of the XXXX earnings as attested by XXXX XXXX saying to me on XX/XX/XXXX that she and the underwriter could find no indication of the gross income in the XXXX Request for Mortgage Assistance ( RMA ). It was clearly stated in the RMA and entered in the correct location as per instructions in the RMA and a step by step review with BA XXXX XXXX, my initial XXXX contact. 

XXXX XXXX stated to me that the substantiated XXXX monthly income was not included based on a subjective determination/judgement of an underwriter. Please remember that if you practice subjectivity, you make everything up for debate. 

XXXX please explain to me how gross income, income not affected by expenses, is determined/calculated and why income from a rental property is not included based on a subjective judgement of an underwriter. If you are not using the income, you ca n't use the expense. 

Please explain to me how the RMA handles/classifies/lists/accounts for homes owned, seasonally rented, and used by the owner when not rented. What category does this fall under in the XXXX proprietary capitalization modifications? 

In the current scenario you add all my income other than the seasonal rental income/contracts derived from the property in question and make decisions on my ability to pay the mortgage on that property without including the property income. According to XXXX XXXX this is a subjective judgement by the underwriter and is not a clearly/objectively defined operating procedure. 

Please be transparent and explain the variables used in the XXXX that determines modification or not on internal capitalization modifications. In addition, please explain to me why you would want to claim the process is proprietary and not be open and share it with the clients of which you are here to help.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation