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At the very least, this is petty- but is it even legal or ethical?!

A few months ago we tried to do a refi w/ our current mortgage lender, US Bank. They said we qualified thru the HARP program since our property values have not rebounded since the housing market took a nose dive. We were a week away from closing when things got a bit complicated due to us having our special needs son added to our deed. (Which they knew about from the beginning) In the end, we decided to just cancel the whole thing.

Now, after it's all be over for weeks, we get a letter of decline from them. How can they decline us, when we were already approved & WE stopped the process ourselves?! I plan on telling them to remove that decline from our credit, since that can lower our credit scores.

But back to my orig. question- how can they ethically or legally do that? I'm thinking of reporting it to the BBB. Thoughts?


Asked by mrsmom110 at 7:32 AM on Sep. 2, 2013 in Money & Work

Level 48 (284,613 Credits)
This question is closed.
Answers (5)
  • I do believe it is a form letter that they have to send when a file is closed out. You could call just to be sure. And I don't think it will negatively reflect on your credit report.

    I've applied for loans before, but then after talking to the loan officer, decided it was in my best interest not to get said loan. I withdrew my application, but I still got the form letter. It didn't add a negative mark to my credit.

    Answer by tempsingl3mom at 10:21 AM on Sep. 2, 2013

  • It may be some kind of form letter, sent out to close the file. Or maybe the person you dealt with to inform them that you were canceling didn't pass that info on up the chain, and your son being added would have resulted in a decline, so since they didn't pass on the info, that's what you got.

    I would give them a call and see if you can get to the bottom of it. But if you don't have any proof that you canceled the process, you might end up being stuck with it.

    Answer by wendythewriter at 7:55 AM on Sep. 2, 2013

  • Check your credit report, but I do think they have to send out this form letter. It's only an issue if it reflects negatively on your credit and even then you can append a letter of explanation with all documentation.

    Answer by gdiamante at 9:29 AM on Sep. 2, 2013

  • I am not positive since so many things have changed since the last time I dealt with this but a letter has to go out one way or the other to close out the request. It can not just lay dormant. So the loan is either accepted into active status or it is rejected from the pool of the bank's loans.

    I agree with checking your credit report. If you can not do it for free go in and ask them to explain and do it for you.

    Answer by Dardenella at 12:05 PM on Sep. 2, 2013

  • Check to see if your credit report is negatively impacted. If it is, raise hell everywhere you can.

    Answer by Ballad at 2:20 PM on Sep. 2, 2013