Consumer complaint received 2025-10-29 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Application denials
Company: TAYLOR MORRISON HOME FUNDING, INC.
State: FL

Complaint narrative:
Formal Complaint Taylor Morrison Home Funding Applicant : XXXX XXXX XXXX XXXX Loan Number : XXXX Property : XXXX, XXXX  Loan Type : Conventional Primary Residence Date : XX/XX/year> Subject : Improper Loan Denial and Failure to Follow Federal and Regulatory Guidelines I am filing this complaint against Taylor Morrison Home Funding for mishandling my mortgage loan application, issuing an improper denial, and failing to comply with multiple federal regulations that guarantee fair lending and proper evaluation procedures. 



Summary of Events : XX/XX/year> : My loan officer, XXXX, informed me by phone that my loan had been denied because my income could not be verified. 
XX/XX/year> : I requested a written explanation of the denial reason and filed a complaint stating that I was never asked to provide the bank account where my salary deposits were made. The lender only requested information regarding the {$3000.00} earnest money deposit. 
XX/XX/year> : After my complaint, XXXX contacted me again and asked me to connect my payroll account through the borrower portal, which indicated that the case was reopened. 
XX/XX/year> : I informed her that I would send the requested documents and additional voluntary evidence ( employer verification, payroll confirmation, and check copies ) on XX/XX/XXXX. 
XXXX later, XXXX, her supervisor, notified me that the loan had been permanently denied and instructed me not to send any additional documentation or connect my account. 
That same day, I submitted a formal complaint to Taylor Morrisons Compliance Department, requesting an internal review of these irregularities. 



Violations of Federal Regulations XXXX. Equal Credit Opportunity Act ( ECOA ) Regulation B ( 12 CFR 1002 ) Taylor Morrison failed to provide me with a fair and consistent evaluation. I was denied due to unverifiable income, yet the lender never requested the documents necessary to verify my income. Under Regulation B, creditors must provide applicants the opportunity to clarify or submit supporting evidence before an adverse action is taken. 
XXXX. Truth in Lending Act ( TILA ) 15 U.S.C. 1601/ Regulation Z ( 12 CFR 1026 ) The lender failed to ensure transparency and consistency in the communication of terms and required disclosures. The issuance of a Closing Disclosure followed by a sudden denial violates TILAs requirement for timely and accurate notice of adverse actions. 
XXXX. Fair Credit Reporting Act ( FCRA ) 15 U.S.C. 1681m The Adverse Action Notice issued on XX/XX/year> misrepresents the reasons for denial. It cites excessive inquiries and income not verified, even though those inquiries existed at the time of conditional approval and were already evaluated by underwriting. 
XXXX. CFPB Fair Underwriting and Verification Guidelines CFPB guidelines require lenders to verify and document income and allow borrowers a chance to respond or provide clarifications before denial. In this case, no employer verification or manual income review was attempted, and the file was closed despite my willingness to cooperate and provide full evidence. 
XXXX. XXXX XXXX Desktop Underwriter ( DU ) Selling Guide B3-3.1-07 & B3-3.1-08 XXXX XXXX XXXXequires lenders to request supplemental income documents and attempt verification before classifying income as unverifiable. Taylor Morrison failed to meet this requirement and prematurely denied my application. 



Additional Request : Review Without New Credit Inquiry In accordance with the Equal Credit Opportunity Act ( ECOA ) and the Fair Credit Reporting Act ( FCRA ), I respectfully request that any review or reconsideration of my loan application be conducted without initiating a new hard credit inquiry, as this case concerns procedural and compliance issues, not a new credit request. 

The review should rely on the existing credit file and documentation already obtained during the original underwriting process. I am not seeking a new loan, but rather a fair reevaluation of the same application that was improperly denied due to procedural errors. 

This request aligns with CFPB and XXXX XXXX guidelines, which allow borrowers to have their applications re-evaluated under the original terms when a denial results from lender negligence or failure to follow verification standards. 



Requested Action I respectfully request that the CFPB : XXXX. Investigate Taylor Morrison Home Funding for negligence, lack of procedural compliance, and possible retaliation after I filed an internal complaint. 
XXXX Review whether the denial violated the ECOA , TILA, FCRA XXXX and CFPB underwriting fairness standards. 
XXXX. Require Taylor Morrison to reopen my case or issue corrective measures for procedural violations. 
XXXX. Consider compensation for damages and emotional distress caused by the lenders mishandling and failure to provide due process. 



Attachments : Adverse Action Notice ( XX/XX/year> ) Prior Approval and Closing Disclosure ( XX/XX/year> ) Copies of communications with loan officer and supervisor Proof of employment and payroll verification package Sincerely, XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation