Consumer complaint received 2025-11-26 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Application denials
Company: TD BANK US HOLDING COMPANY
State: MD

Complaint narrative:
Between XXXX and XX/XX/XXXX, I applied for a construction-to-permanent mortgage with TD Bank. Throughout the XXXX application process, the loan team repeatedly confirmed in writing that my income, debt-to-income ( DTI ), loan structure, and builder documents all met qualification requirements. They also granted multiple exceptions ( including a higher loan amount and interest-rate incentives ) based on those qualifications. 

However, after months of underwriting activity, TD Bank abruptly denied the application XXXX days before the land loan maturity datedespite previously approving disclosures, ordering the appraisal, engaging the settlement company, and representing that the file was solid. The denial relied on income figures and DTI calculations that contradict TD Banks own written communications, disclosures, and the evidence supplied. 

Key issues include : TD Bank entertained the application for over 3 months, repeatedly confirming it met guidelines, even though their post-denial justification now claims the file was never strong enough to qualify. 
The bank granted underwriting exceptions, including an increase in loan amount and reductions in interest rate with incentives, which would not be permitted if the file were truly weak. 
XXXX Bank issued the XX/XX/XXXX XXXX XXXX using my correct $ XXXX reinstated income, but later claimed they used a different ( lower ) figure in underwriting. 
On XX/XX/XXXX, XXXX Bank issued a second disclosure reflecting an increased loan amount, again suggesting the file was strong enough to proceed. 
Underwriter XXXX XXXX was copied on numerous communications throughout XXXX and XXXX, yet no one ever indicated the file was weak or unapprovable. 
Questions I asked about income structure, ratios, and qualifying requirements were routed to underwriting management, who provided answers and confirmations rather than indicating concerns. 
XXXX Bank ordered an appraisal on XX/XX/XXXX, causing financial cost to me as the borrower. Ordering an appraisal is typically not permitted unless the file passes initial underwriting. 
The bank held the completed appraisal for 9 days and only released it after I repeatedly asked. When it was finally sent, it included a disclaimer saying it was not an intent to lend. 
XXXX days after receiving the appraisal, XXXX Bank asked for my XXXX tax return to support income, but then used that same return to justify lowering my income and denying the loan. 
Despite knowing the land loan matured on XX/XX/XXXX and delay would cause financial harm, TD Bank continued processing the file for months before declining it less than 10 days before maturity.

TD Bank engaged a settlement company to prepare closing documents, implying the file was expected to close. 
On XX/XX/XXXX ( XXXX day after application ), XXXX Bank told me the file looked solid. No one ever stated otherwise until the abrupt denial. 
Different TD Bank staff gave conflicting income and DTI figures, ranging from 22 % to 47.55 % to 54.6 %, none of which were reconciled. 
TD Banks denial letter does not match the facts or its own prior representations, and several of my escalation questions were left unanswered. 

I believe this sequence represents unfair or deceptive practices, improper adverse action procedures, misapplication of guidelines, and a failure to provide accurate and timely information during the mortgage application process.

Company response to consumer: Closed with explanation