HELOC rejection due to nonexistent info...WTH?

[Vonetta Booker]

I applied for a HELOC with TD Bank, and after nearly a week of calling & checking on my application (they initially claimed it would take only two days), they finally said my application was denied. "Based on what, exactly?" I asked. They claimed my debt-to-income ratio was a whopping 76%, and that I'd missed a mortgage payment. Well, something didn't sound right (since my credit's great & I haven't missed any payments of anything in a long while). I pulled my 3 credit reports and found that my DTI's actually only 25% (TD said their limit was 36%), and that mortgage payment I missed was a single 30-day past-due back in 2010 (the account's since been closed via a quitclaim after my ex & I divorced).

I'm fuming right now, since I don't see any of the info anywhere they claimed to turn me down.  Has anyone else experienced this? Do I have any recourse, or should I just move on to the next bank? (I just don't want this to happen again for some reason.)

[Upen Patel]

@Vonetta Booker By law, they have to provide you a denial letter stating the reason and a copy of your credit report that they used.

Get that and then you can see if they made a mistake and have them fix it. If they refuse to then move on but do file a complaint with CFPB.

Upen Patel, Mortgage Banker

VA, FHA, Investor Loan Specialist

National Lender, Federal NMLS# 1374243