Mortgage -- Applying for a mortgage or refinancing an existing mortgage -- Complaint #10126261
Complaint Overview
Complaint ID: 10126261
Company: Discover Bank
Product: Mortgage
Sub-Product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage
Sub-Issue: Application denials
State: Missouri
ZIP Code: 65802
Date Received: 2024-09-13T12:00:00-05:00
Date Sent to Company: 2024-09-13T12:00:00-05:00
Company Response: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Submitted Via: Web
Consumer Narrative
XX/XX/XXXX - Pre-qualification for a discover home loan. XX/XX/XXXX - Spoke to XXXX XXXX. He reviewed my documents submitted, monthly income from employment, Rental Income from my XXXXXXXX XXXX Said I qualified and my debt to income is very low. He forwarded my file to my actual loan processor at that time XXXX who then reviewed my filed and sent it to underwriter for final approval. XX/XX/XXXX - Underwriter requested my CD 's, Savings and Income and losses for XXXX for XXXX house rental. I then sent a message to the underwriter that this house is undergoing repairs to be sold and was to be excluded from the home equity loan application process. XX/XX/XXXX - The underwriter declined my Conservational Loan ( Home Equity Loan ) with the reason of debt to income is too high. XX/XX/XXXX - Rep provided explanation that shows underwriter calculation method used to calculate my debt-to-income ratio as follows. Income XXXX {$2600.00} XXXX XXXX {$3000.00} XXXX XXXX XXXX {$660.00} Total {$5000.00} XXXX XXXX {$29.00} XXXX {$30.00} Child Support {$200.00} XXXX {$910.00} Current Housing Expense {$1400.00} Adding back XXXX {$23.00} Total {$2500.00} {$2500.00} divided by {$5000.00} equals 50.84 % DTI The underwriter calculated the XXXX XXXX Loss of {$660.00} by dividing the XXXX XXXX XXXX loss of {$7900.00} by XXXX. This calculation method shows my rental losses from XXXX divided by 12 months was deducted from my current XXXX monthly employment income, although I was not given any credit for my current XXXX rental income. In addition of this calculation, a monthly loss of {$910.00} from XXXX XXXX XXXX monthly loss was used to increase my monthly liability although my XXXX house has been a second home in XXXX undergoing repairs to be sold. This calculation method increased my current debit to income ration causing them to decline my home loan. When I enquired what federal mortgage rules or guidelines was used, they said it was their internal underwriting policy that they were not able to share with me.
Frequently Asked Questions
What is Complaint #10126261 about?
Complaint #10126261 was filed against Discover Bank regarding Mortgage specifically about Applying for a mortgage or refinancing an existing mortgage. It was received by the CFPB on 2024-09-13T12:00:00-05:00.
How did Discover Bank respond to this complaint?
The company responded with: "Closed with explanation". The response was timely.
What is the risk level of this complaint?
See the risk assessment section for details on this complaint's risk profile.
How do I file a similar complaint?
You can file a complaint with the CFPB at consumerfinance.gov/complaint. Select the appropriate product category (Mortgage) and describe your issue in detail.
Can I see other complaints against Discover Bank?
Yes, visit the Discover Bank company profile at readthecomplaint.com/company/discover-bank to see all complaints, risk scores, and analysis.
Disclaimer
This analysis is AI-generated based on publicly available CFPB complaint data. It does not constitute financial or legal advice.