Am I entitled to a denial letter

[Tekoa Glover]

I want to know if I am entitled to a denial letter if I am denied a DSCR loan. One week before closing the lender decided that I had not owned the property long enough. They said for me to come back in 3 months, because I had only owned the property for 9 months. Mind you, I had completed appraisals, credit pulls, and all other tasks that they required. Then I was blindsided by this I asked if i was entitled to a denial of credit in accordance with the Equal Credit Opportunity Act-Regulation B 15 U.S.C. 1691. Also under the Fair Credit Reporting Act.
 Am I correct?

[Jay Hinrichs]

NOPE  these are not federally or state regulated loans or lenders they owe u NOTHING.

[Nate Herndon]

@Tekoa Glover unfortunately Mr. @Jay Hinrichs is correct.

However, the following seasoning periods are what I am working with on the DSCR programs that I utilize for my clients. Feel free to reach out with any questions. Any competitive DSCR program is going to be in the 90-day seasoning range for allowing a refinance based on the newly appraised value.

Your 9-month seasoning should not be an issue, barring an extremely unique situation (like inheriting a property or having it gifted to you).

------------------------------------

• 0-6 Months (Delayed Purchase, no Rehab completed) - up to 80% of purchase price
• 6+ Months (Cash-Out Refinance, no Rehab completed) - up to 75% of appraised value
• 0-3 Months (Cash-out refi, Rehab completed) - 75% of appraised value [good rates]
• 3-6 Months (Cash-out refi, Rehab completed) - 75% of appraised value [best rates]

[Erik Estrada]

Quote from @Tekoa Glover:

I want to know if I am entitled to a denial letter if I am denied a DSCR loan. One week before closing the lender decided that I had not owned the property long enough. They said for me to come back in 3 months, because I had only owned the property for 9 months. Mind you, I had completed appraisals, credit pulls, and all other tasks that they required. Then I was blindsided by this I asked if i was entitled to a denial of credit in accordance with the Equal Credit Opportunity Act-Regulation B 15 U.S.C. 1691. Also under the Fair Credit Reporting Act.
 Am I correct?

 Nope that does not apply to business purpose financing. 

If you still have the appraisal and it is completed by an AMC you can transfer it and still close on it. There are several lenders that have a 3 month seasoning period, a few with no seasoning at all.

It's unfortunate there are a lot of crappy lenders out there. That's why, its best to shop for quality lenders. 

[Chris Seveney]

Quote from @Tekoa Glover:

I want to know if I am entitled to a denial letter if I am denied a DSCR loan. One week before closing the lender decided that I had not owned the property long enough. They said for me to come back in 3 months, because I had only owned the property for 9 months. Mind you, I had completed appraisals, credit pulls, and all other tasks that they required. Then I was blindsided by this I asked if i was entitled to a denial of credit in accordance with the Equal Credit Opportunity Act-Regulation B 15 U.S.C. 1691. Also under the Fair Credit Reporting Act.
 Am I correct?

No but if you paid for those items you could get copies of them and use them for a private lender who may be able to give you a loan. Terms will most likely not be as good as a DSCR loan but if you needed a quick turnaround to get money in the door for 3-6 months you could go hard money.

[Trevor Finn]

Hey @Tekoa Glover,

Yes, you’re correct. Under the Equal Credit Opportunity Act (ECOA) and the Fair Credit Reporting Act (FCRA), if you are denied credit, the lender is generally required to provide a written denial notice. This notice should include the reasons for the denial or a statement informing you of your right to request those reasons within 60 days. If the lender used your credit report as part of the decision, they should also include details about the credit reporting agency.

It’s worth following up with the lender to formally request this denial letter and ensure they’re compliant. If you’re unsure about their response, consulting an attorney or contacting the CFPB may help clarify your rights further.

Hope this helps

[Bill B.]

Did you read the 7 day old replies by 4 experts before responding? SMH.