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Good morning. I am Loren, a licensed attorney, and I look forward to assisting you this morning.
Have you looked into other lenders or other mortgage products? Are you working with a broker?
Are you online with me?
Basically, lenders have various mortgage products and each of those products has its own underwriting standards for eligibility. From a legal standpoint the lender may enforce its own underwriting standards so long as those standards do not discriminate against a legally protected class of potential borrowers. A protected class would be race, religion, ethnicity, gender, etc. Unfortunately, temporary or unemployed persons are not considered a protected class and they may be legally denied credit.
So, yes, all persons who were unemployed in the previous 2 yrs or 1 yr or 3 yrs may be denied that particular mortgage without it being illegal.
However, that is just one lender and just one product. Different loans and lenders have different underwriting standards. Have your broker look at other lenders. There is probably a different loan you may qualify for or, it may be possible, that now is just not a time you will be able to refinance with the products this broker works with. In that case, shop around with a different broker.
I realize this is probably not the answer you were hoping to receive. Also, please remember that this is not necessarily a moral judgement on my part. As a professional, however, I am sometimes placed in the position of having to deliver news which is not favorable to a customer's legal position, but accurately reflects their position under the law. I hate it, but it happens and I only ask that you not penalize me with a bad or poor rating for having to deliver less than favorable news.
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