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It was Flagstar. Doc #6144 according to the info the underwriter gave my broker.
Sorry to hear about your situation. Unfortunately now you will have to shop for a different lender, which will result in another inquiry. My suggestion would be to find a lender out of the state that doesn't have those guidlines. I got one better for you after months of looking for a house going through the Neigborhood Stabilization Program (NSP) in the state of Nevada, and following all of the guidlines like finding a house in the approved zip codes, we get to UW and finally get ready to close, only to find out that the bank has dropped the zip code and no longer lends to that area. Imagine my dissapointment 3 inq later with the same bank in 3 months. WTH!
Did they give you the denial in writing? Are lenders required by law to notify you of the reason for denial in writing?
Yes, they gave me the denial in writing, it is a form. But actually since I last posted things have changed a little bit. Through my pleading and the broker i am working with's pleading, Flagstar has asked for letters from the other lenders who generated the other inquiries on our credit confirming that we do not have active applications with them. I have gathered those and just submitted them this morning. So maybe, just maybe they are having a change of heart. Fingers crossed!!
This is a Flagstar Bank underwriting guideline, and I'm not sure why the just make it specific to Florida & Arizona (although it appears it may be due to the declining values in those states). Any other lender should be OK with this. You have to explain what the inquiries were from, but others lenders wouldn't deny (unless they are underwriting using Flagstar's guidelines).
Thanks Shane and to others who have commented. Turns out we've struck some good luck... after submitting letters from the other lenders who generated the credit inquiries (with each letter explaining that we did submit a mortgage application with them but did not proceed and do not have an active application with them), Flagstar has had a changed of heart! I received word yesterday that they have granted an exception to this requirement and have now removed our application from the "Denied" category and it is now proceeding through underwriting again. Whew!
Congrats, glad Flagstar made an exception, it's a silly guideline IMO.