I received a letter from Chase/Wamu regarding a little-used Home Equity Line Of Credit (HELOC) on May 8th, requiring a 4506-T and a recent paystub by May 15th. I contacted customer service representative "Aaron" (877-750-6825) with questions.
- I asked "Aaron" about the referenced 4506-T form, and he confirmed that the package I received was not complete; it did not include the pre-filled form 4506-T. "Aaron" said a corrected package would be sent out May 6th.
- I asked "Aaron" why Chase/Wamu was demanding this as "updated information upon request" since the original loan was secured as a Stated Income/Verified Asset (SI/VA) loan, and did not require either tax returns or paystubs. He stated that these documents were required as part of the Washington Mutual takeover by JPMorgan Chase Bank. "Aaron" stated that I must provide this information by the due date or the line of credit would be frozen and later closed.
- I asked that this issue be escalated, since I did not consider this additional information to be part of "updated" information. I was forwarded to "Bonnie" (888-800-8738), a Department Manager. I explained to "Bonnie" that my copy of the loan agreement stated that Chase/Wamu could request "a current financial statement, a new credit application, or both, annually". There is no mention of new information not required as part of the original loan. I asked "Bonnie" to mail me her copy of the loan documents which indicated that Chase/Wamu could request this new information.
- I received the updated packaged from Chase/Wamu on May 12th. The letter was back-dated five days from the postmark date, and contained conflicting and erroneous instruction. For example, the text stated "We are requesting transcripts for the two most recent tax years", i.e., 2007 and 2008. The form 4506-T, however, was pre-filled with a request for tax years 2006 and 2007.
The updated package still required a response by May 15th. Since the delivery address was a PO Box in Florida, this allowed me 24 hours to complete the form and send it by USPS Priority Mail.
Since I now had only 24 hours to fill out and mail the paperwork, and had not yet received the alleged legal text from "Bonnie", I sent the 4506-T and paystubs via USPS (with confirmation). I attached an additional cover sheet with the following stipulation:
Upon review of my copies of the original "Master Loan Application" and "Home Equity Line of Credit Agreement and Disclosure", this form 4506-T is being provided "to comply with governmental reporting or legal processes" as per the terms and conditions of this stated income loan. Use of this information by Washington Mutual or JPMorgan Chase Bank for purposes other than those expressly permitted under the original terms and conditions of the "Master Loan Application" and "Home Equity Line of Credit Agreement and Disclosure" will be reported to the Office of the Comptroller of the Currency (OCC) and Federal Deposit Insurance Corporation (FDIC).
I am considering filing a complaint with the Office of the Comptroller of the Currency (OCC) for what I consider to be a flawed, inappropriate, and onerous demand. One of the OCC requirements is that I first attempt to resolve the issue with the lender. If I am not able to solve this with another call to customer service, I will send their loan compliance officer (or department) my detailed requirements for resolution. I will send these via US Mail and allow them 14 days to respond in writing before filing my complaint with the OCC .