Opinions on Declined Mortage and fee

[Craig Steltz]

All,

I recently applied for a mortage on an investment property. There was a small non-refundable fee for application. I went in thinking there was absolutlely no way it could be declined. I have perfect credit. Meaning 800 or higher. Plenty of cash/investments to pay for the property many times over. So I believe I couldn't be rejected.

I even asked the lender if mortage lender if there was anything that could stop this and he said the only thing could be the area. I asked him what do you mean the area? It's in a decent part of town what issues could there be? He just said there could be a reason why the complex could be rejected. I asked why? He said sometimes it just happens.

Well come to find out they rejected it based on two reasons:

1. Owner occupancy is like less than 10%
2. One owner owns a high percentage of the units.

I was livid over this. And I demanded a refund of my application. In my opinion this is their restriction and not mine. And if so it needed to be explained ahead of time. These were facts I could of researched ahead of time. In my opinion the mortage rep was negligent in explaining these issues.

What is your opinion? Do I have any ground to stand on here? I believe this is near fraud to not answer my question when I asked what could possibly be reasons for not accepting the loan and he provided not feedback. And he damn well knew this was an investment property area and the owner occupancy would be very low.