I bought a house in Iowa in July 2016 and got a mortgage loan through a local lender. As part of the loan application, the lender applied for a tax credit program known as the 'Take Credit Mortgage Credit Certificate'. I paid $350 to the lender for the application, and met all qualifications. Link to tax credit: http://www.iowafinanceauthority.gov/takecredit.
Now that it is tax time, I need information from the credit approval to receive the credit on my taxes. When following up with the lender (my loan originator no longer works for the lender), they tell me that the credit was applied for, but was neither approved nor denied before the closing date. I was never told about this prior to closing, so I had assumed everything was approved.
My question is, is the lender on the hook for the potential tax credits lost? The credit would have applied every year for the life of the 30-year loan. I cannot retroactively apply for the tax credit. Without this credit, I believe I am technically losing about $2000 a year, and that is just for the first 10 years. Can I sue for these potential losses?