Consumer complaint received 2024-11-12 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Applying for a mortgage or refinancing an existing mortgage — Trying to communicate with the company to fix an issue with the application process
Company: DISCOVER BANK
State: SC

Complaint narrative:
Discover Home Loans : I am writing to formally address significant, unresolved errors in the handling of my recent loan application due to misreported income for both myself, XXXX XXXX XXXX and my husband, XXXX XXXX XXXX XXXX. Despite multiple attempts to contact your team and resolve these issues, Discover Home Loans has not taken corrective action to address the clear inaccuracies that led to an unjustified denial of our application.

Timeline of Events 1. Initial Document Submission : Upon submitting our initial application, I was contacted via email by Discover to resubmit the same documents, which I promptly did.

2. Automated Decline Notification : Shortly after resubmitting, I received an automated email informing me that the loan was declined. I immediately contacted Discover to understand why the application was denied. 
3. First Explanation of Denial : Upon reaching out, I was informed that even though I provided both of XXXX XXXX XXXX W-2 formsone from his initial job at XXXX XXXX XXXX XXXX through XXXX ) and another from his subsequent job at XXXX ( starting later in the year ) Discover would only consider income from one of these W-2s. This explanation was confusing and concerning, as both W-2s had been specifically requested by Discover.

4. Second Contact and Representative Explanation : I then spoke with an additional representative who advised that the final decision rested with underwriting. Despite my concerns about the inaccuracies in income reporting, I was told that the underwriting decision was final and no adjustments would be made. The representative suggested that my only remaining option was to seek financing from another bank.

5. Escalation Request and Further Income Reporting Errors : Following this conversation, I requested an escalation. I sought contact with someone who could address the clear errors in reporting not only my husbands income but also my own income, which had also been misrepresented. Despite my requests for a full review of these errors, I was told by another representative that underwritings decision would remain final, even though the reported debt-to-income ( DTI ) ratioimpacted by these inaccuracieshad directly contributed to the denial. 
6. Further Details on XX/XX/XXXX : Today, XX/XX/XXXX, I received a follow-up from a higher-level representative. This individual explained that the reason for excluding XXXX XXXX XXXX income from XXXX XXXX was because Discover would only count income from one employer, and they chose to count his current employer, XXXX, for only {$13000.00}. When I questioned why both W-2s were requested if only one would be considered, I was met with unclear responses that contradicted previous information provided.

7. Unrelated and Inaccurate Email Response : Later, I received an email response that was unrelated to our discussion, referencing overtime and bonuses, which were never part of our income calculation concerns as I am well aware there needs to be 24 months to be considered. I myself have earned commissions as part of my compensation package for over a decade and I am well versed on how it applies. This information was irrelevant and did not address my core concerns about the inaccuracies in the reported income for both myself and XXXX. Not only were our salaries reported incorrectly, but the way I yield monthly commission was also reported incorrectly. 

Request for Immediate Action and Formal Escalation Despite clear documentation and multiple contacts, Discover Home Loans has failed to address or correct the errors that unfairly impacted our application. Each representative I spoke with has provided conflicting information, and there is no written acknowledgment of the core issue at hand : the inaccurate reporting of both my income and XXXX income in XXXX, which led to an erroneous DTI ratio and ultimately, the denial of our application. 

As a result, I am escalating this matter. I have filed a formal complaint with the XXXX XXXX XXXX XXXX XXXX XXXX and will be submitting additional grievances with the Consumer Protection Agency regarding Discovers mishandling of our application. Additionally, I am considering arbitration proceedings against Discover Bank for the negligent handling of our application, the lack of transparency in income verification, and the financial and emotional impact of Discovers refusal to correct known errors. 

I expect Discover Home Loans to take immediate action to review this denial based on the accurate income data that has been provided. I also request a formal acknowledgment of the errors made in handling our application, along with written confirmation of steps taken to rectify these inaccuracies in compliance with financial standards for fairness and accuracy. 

Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX XXXX SC XXXX XXXX XXXX ) XXXX

Company response to consumer: Closed with explanation