I tried applying for a loan and was refused, because the bank said this would be nonconforming. I asked them to lower the amount of the loan so it would be conforming. And they refused. My income is over 100k for 2 years with tax returns and I cannot get a 300k loan? If my bank ran me through the motions and strung me along, I would like to get back at them.

I would like to sue the bank so they cannot get TARP Money or report them to the banking authorities.. How do I go about to do this?

Essentially you can't stop them from getting money from TARP.

Try another bank.

Loan decisions are made once all the facts are assembled. So its unlikely you can prove any wrongdoing on the part of the bank.

Banks make money giving loans, most have fairly tight standards, and it is not merely your income, but your repayment history, your debt to income ratio, time on the job, what industry you may be working in and the use of the loan