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Spotting FCRA/Truth-In-Lending Violations w/Mortgage Co.

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please note: I've posted this elsewhere, so if this is redundant for any of you, my apologies...

I'll try to make this as clear & brief as possible.

If anyone wants more information just ask - I'll post, email, or PM it... I have kept pretty good records, organized a timeline, and substantiated it with emails between all parties involved...

O.K., so I've just concluded a failed attempt to finance a home.

This in & of itself isn't so heartwrenching, as much as the fact that I got lied to & misled for several months. Furthermore, 4 months deep, I get a Notice of Denial dated 6 weeks before it was faxed! Huh?!? To add additional insult to injury, additional emails & phone calls with the lender claim I was denied because I didn't have 12mos. cancelled rent checks, even though they told me this was no problem due to using a VOR form & confirming with my landlord by phone, which they did 2 weeks or so ago. This is not anything close to what the notice-of-denial states.

My question is:

If the lender denied my loan app in January (according to the letter they sent me in March), then did they have the right to request further information from me under the guise of processing the same loan?

Banking Laws? Privacy Laws? Truth-In-Lending Laws? FCRA Violations (permissible purpose)?


(Don't know if all this is applicable, but I had to start somewhere)

U.S. Code - article 1639 - Requirements For Certain Mortgages (Time of Disclosures)

U.S. Code - article 1601 - Informed Use of Credit

FCRA - No permissible purpose for credit pulls or sharing of info for credit pulls after Jan. 07


I only provided more info because I was NEVER told my app was denied in January OR Feb.

In fact, I spoke with the UW who did my VOR, & he told me that if the loan was denied, he never would made the call to my landlord - and this was 5 weeks after I was supposedly declined, according to the letter the lender sent.

Here's what happened AFTER the Notice-of-Denial dated Jan. 07 & sent Apr.2:

1) 3 closing dates set by lender, who notified directly my realtor & closing attorney

(1 we found was bogus by calling the place the closing was supposed to occur)

2) Numerous calls & emails from lender to my attorney, realtor, and finally landlord for VOR

(6 weeks after alleged denial date)

3 Direct requests via phone & email for personal information from me including Tax Records, Bank Statements, Profit & Loss Statements, Income Statements, Balance Sheets, explanatory letters to underwriter, DL & SS card hard copies, and rental history information direct from my landlord - all in the days, weeks, and months AFTER I was denied (according to the Notice-Of-Denial I was faxed).

4 7 additional inquiries on my credit reports: 2 from lender & 5 from homeowner's insurance search. The lender spoke directly with 2 of the 3 companies I checked for quotes, as they had to do so directly to sort out the Declarations page they needed to close the loan.

5 Loan package changed, according to lender, after Jan. denial date, new GFE never sent to me - at my attorney's request, loan processor explained the new package to me over the phone (interest, terms, etc). In fact, I have emails, etc to back all this stuff up.

To add insult to injury, when the Lender (ofc. mgr, not L.O.) told me I was declined due to no 12 mos. cancelled rental checks, this decision was reached over 6 weeks after alleged denial. Furthermore, the denial letter lists totally different reasons for the denial. The fax was sent (from the office fax machine) while she & I were ON THE PHONE discussing them NOT accepting my VOR even though in January they told me the VOR form & phone call would satisfy the rental history requirements...

If nothing else, I want every damn inquiry related to this loan, dated after that Notice-of-Denial, removed from my credit reports. If they told my I was denied, I wouldn't have been seeking homeowner's insurance after-the-fact!!!

I can't believe they gave my SS# to the insurance companies when they didn't even have an active/valid package on me to process. Of course, with all the additional inquiries within 6-8 weeks, my score has been negatively affected, the inquiries remain on my report for 2 years, and I look like a greater risk than I am for future credit considerations. Furthermore, as a result of more inquiries & a lower score, finding a new place to live will be that much more difficult & expensive - even my landlord ran my credit before he rented to me (and this was 4 years ago).

I am self-employed, and as a result of my now lower score, I am having trouble finding any online credit card payment processors who will give me a rate that's feasible for me (if they'll even have me) due to lower scores & too many damn inquiries.

The worse part is, this lender was the last one I was going to contact about buying a place until this coming fall, as I had numerous bogus accounts on my credit reports due to I.D. Theft - I chose not to address any of them until the loan process was finished, as with my scores & bank info (according to the lender), a loan could still be approved for me. So, I blew MONTHS that I could've been fixing my reports up letting these buffoons spin me around and then hit me rawdog with a denial letter dated just under 2 months ago. If I'd known I was denied, I certainly wouldn't have kept calling or submitting documents or searching for related insurances, or speaking with the underwriter (how'd I'd get the info to contact him if my package was denied months before?)...

Someone mentioned to me that maybe they'll argue they denied my loan, but agreed to further process it while I addressed some credit issues - but that's not what happened. My closing attorney was stunned to see the date on that Notice-Of-Denial, as was my realtor, and the seller side of the house, too. After all, we were notified by the lender of 3 closing dates well after the alleged denial.

I'd like to take some action. File a complaint. Lawsuit if possible. Not because I'm sad/mad about the house, but because the protocol was so out-of-order and deceptive. Maybe I can help critical mass be reached to change how this type of thing goes down...

And the period at the end of the sentence:

Just got a letter from my insurance company that rates are to now be determined by credit scores.

So now my vehicle(s) insurance & renter's insurance goes up because these jerks lied to me and got me stuck with 7 unecessary inquiries?!?!?

WHAT THE F :stop: CK?!?!?!?

And for those who don't know, "soft" inquiries, if done by insurance companies, can be seen & treated as "hard" inquiries by other insurance companies in many states. <sigh>

Again, any insight is greatly appreciated.

I've never posted to CBs before, but what I've learned from here has made a huge, empowering difference in my financial life, as well as several friends of mine whom I've helped address their own credit issues over the last few months. Hell, I've been jealous that their reports are imporving while mine have been held in limbo, and then damaged, by this lender and how they dealt with me. I've got a relative who is a loan officer & he's always asking me to help him with, or directly help, some of his clients gain control of their credit situation. Of course, I simply direct him here. He can read just as well as I can!!!

...he just doesn't want to...

thanks for your time.


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you might be able to claim that after the date of your letter of denial, your mortgage lender had no permissible purpose to have mortgage insurers pull your report.

However, FICO scores take into account you might be shopping for the best deal on mortgage, insurance, etc. and even if you have several inquiries of the same kind during a short span of time, they are only counted once.

I don't know whether insurance companies rely on FICO or other scores.

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and regarding the multiple inquiry issue ...its a catch 22 situation.....

even though they claim to count multiple inquiries for shopping around for rates for autos or mortgages as 1 ding and not lowering your fico.....

if you apply for credit, on the other hand ,you can be turned down for having too many inquiries ..its a catch 22

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