Product: Mortgage

This complaint is being filed due to the failure of HUD and The Money Source to perform their fiduciary responsibilities in regard to the FHA Limited 203K loan  closed on XX/XX/XXXX, for the property located at XXXX XXXX XXXX XXXX, XXXX, GA XXXX. HUD has failed to provide compliance and oversight of the loan and 203K Program by allowing The Money Source to withhold the balance of the allocated renovation funds for the property located at XXXX XXXX XXXX XXXX, XXXX, GA XXXX. HUD allowed The Money Source to issue an initial distribution/payment of {$15000.00} to XXXX XXXX XXXX without securing proof of a general contractors license and construction insurance certificate required by the State of Georgia to operate as a general contractor. 

HUD and The Money Source have allowed the property to continue to decline. The Money Source hired a HUD 203K Consultant, paid out of the 203K loan funds, to price the quality and level of work performed by XXXX XXXX. On XX/XX/XXXX, an exit inspection report was presented to the Money Source by XXXX XXXX, 203 ( K ) HUD / FHA Consultant ( ID # XXXX ), pricing the work performed as up to {$3800.00}. 

The following is the chronology of events after I released XXXX XXXX from service on XX/XX/XXXX, after being notified of unsatisfactory work : On XX/XX/XXXX, The Money Source was forwarded a copy of e-mail dismissing XXXX XXXX and requesting a final bill for services. 
On XX/XX/XXXX, XXXX XXXX submitted a final bill to me via e-mail for renovation services performed for another customer. 
On XX/XX/XXXX, a certified letter was sent by me to XXXX XXXX and The Money Store via USPS detailing the reasons for dismissal. 
On XX/XX/XXXX, I received a collection letter from the XXXX XXXX XXXX  representing XXXX XXXX for the cost of services listed in the e-mail dated XX/XX/XXXX, for services rendered to another customer. 
The e-mail above was forwarded to The Money Source on XX/XX/XXXX. 
On XX/XX/XXXX, I received an e-mail response from XXXX XXXX XXXX, 203K Specialist for The Money Source, stating, her manager would be reviewing the file and the file would be placed on legal hold for the time being. 
After several phone calls and e-mails requesting an update, on XX/XX/XXXX, I received an e-mail response from XXXX XXXX, AVP | Escrow Disbursement, from The Money Source. Ms. XXXX stated, it was my responsibility to respond to the collection request and any disputes have to be dealt with between me and the contractor. Ms. XXXX referred me to the homeowner-contractor agreement issued by The Money Source/XXXX Mortgage, citing the arbitration clause, along with a copy of the exit inspection report. 
After receiving the e-mail above, I phoned Ms. XXXX to request an explanation for the delayed response and delivery of the exit inspection report. Ms. XXXX gave no explanation. 
On XX/XX/XXXX, Ms. XXXX e-mailed me to request a phone meeting between me and her supervisor XXXX XXXX. The meeting was scheduled for XX/XX/XXXX. 
On XX/XX/XXXX, I received an e-mail from The Money Source with an attachment titled XXXX Extension. The document was a Request for Acceptance of Changes in Approved Drawings and Specifications. The e-mail stated the attached document was an extension request that needed to be completed and signed by me and returned to The Money Source. The new date of completion and explanation for the change were left blank on the document. 

On XX/XX/XXXX, I had a phone conversation concerning the status of my loan and its reinstatement with Ms. XXXX and XXXX XXXX, HUD Representative. During the conversation, Ms. XXXX stated no more distributions for repairs would be released and I would be required to recoup the overpayment from XXXX XXXX via arbitration. I would also be required to continue to make payments for the renovation loan in full, including the non-distributed funds. I asked Ms. XXXX how could funds remain on hold after Mr. XXXX assessment supported my statement of the quality of work performed by XXXX XXXX? Ms. XXXX stated, she could deem the house unhabitable and I will still be responsible for the mortgage and have to live elsewhere. I mentioned I did not intend on signing the extension form. Ms. XXXX stated my signature was not needed that she had the authority to institute the extension. 

On XX/XX/XXXX, I filed for construction arbitration with the XXXX XXXX XXXX as suggested by Ms. XXXX. I received an e-mail on XX/XX/XXXX, from XXXX XXXX XXXX stating XXXX XXXX had been notified of the request for arbitration. On XX/XX/XXXX, I was informed XXXX XXXX had not responded to my request for arbitration and had not paid their portion of the cost for arbitration services. XXXX XXXX XXXX requested I pay on behalf XXXX XXXX. On XX/XX/XXXX, I received a notice of suspension of arbitration for non-payment by XXXX XXXX and again, XXXX XXXX XXXX requested I pay McDonald Constructions portion of the arbitration services fee. 

I e-mailed Ms. XXXX on XX/XX/XXXX, attaching the e-mails from XXXX XXXX XXXX concerning the non-response from XXXX XXXX and requesting : When would HUD/The Money Source recoup the {$15000.00} from XXXX XXXX? 
When would the remaining 203K Renovation funds be released? 
If not released, when would the remaining funds be removed from my loan and adjusted to reflect the credit of the overpayments to my loan? 

On XX/XX/XXXX, in lieu of Ms. XXXX responding, I received an e-mail response from XXXX XXXX, Paralegal | General Counsels Office, Ms. XXXX stated my email had been escalated to the Office of General Counsel for review and a response would be provided early next week. On XX/XX/XXXX, I requested an update because I had not received the promised response. As of this letter, I have not received a response from The Money Source. 

I and The Money Source on XX/XX/XXXX, received a letter of cancellation from XXXX XXXX XXXX concerning my homeowners insurance due to failure to complete required repairs. I and The Money Source also received a notice for the same required repairs from XXXX XXXX XXXX on XX/XX/XXXX. 

The failure of HUD and The Money Source to deliver the contracted renovation funds has led to the insurability of the property. The Money Source has failed in other areas in their fiduciary responsibilities by allowing the homeowners insurance to lapse and overpay an insurance provider. This failure was brought to the attention of HUD ( Ms. XXXX ) who declined to provide corrective action. 

I have additional examples of HUDs failure to provide oversight involving another mortgage company ( XXXX XXXX ). For this reason, I am requesting your assistance in resolving this issue. 

Thank you in advance for your assistance in resolving this issue. 

Sincerely, XXXX XXXX