According to the latest "rejection of loan modification application" received from the BofA modification department, we didn't meet the federal guidelines they state they are obligated to use to determine if one qualifies for a modification. One of the areas cited as a reason for rejection is the balance owed on the current loan vs. what the local market rate is currently. From what I've read about those guidelines, an applicant cannot be turned down based upon the total loan amount (as long as it is under the jumbo loan figure - which we are under) due as long as the monthly mortgage payment is 31%, or higher, of the pre-tax income. I am hoping someone can offer me a clarification of this discrepancy. In addition, the first rejection quoted income at about $900 less per month than what the actual income is. The second rejection quoted an even lesser amount which is closer to $1000 per month short of actual income. Who is operating the calculator for the modification process at the bank?