Product: Mortgage

Consumer Financial Protection Bureau ( CFPB ) XXXX XXXX XXXX XXXX XXXXXXXX, Iowa XXXX XX/XX/XXXX Formal Complaint Against Mortgage Lender : XXXX XXXX, XXXX XXXX XXXXXXXX Fairway Independent Mortgage Corporation XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX, Arizona XXXX ( XXXX ) XXXX XXXXXXXX XXXX XXXX XXXXXXXX AZ XXXX Dear CFPB, I am writing to file a formal complaint against my mortgage lender, XXXX XXXX of Fairway Independent Mortgage Corporation , regarding fraudulent practices that occurred during the purchase of my home in XX/XX/XXXX. It is apparent that XXXX XXXX colluded with an appraiser and real estate agents to falsely inflate the price of my house significantly, causing my family serious financial harm. 

Background Information : In XX/XX/XXXX, my spouse and I purchased a home located in XXXX, WA. We had been preapproved for a loan with a different lender, but our realtors encouraged us to apply for a mortgage with their friend, XXXX XXXX. We were purchasing the house as out-of-state buyers and were not familiar with the area. My husband viewed the house but I was only able to see pictures of the house and was given a tour via XXXX with the realtor. This realtor claimed to be able to act as the home inspector and encouraged us to waive the inspection in order to be chosen by the sellers. We were led to believe that the purchase price was reasonable and aligned with market values based on the information provided by the lender, appraiser, and real estate agents involved in the transaction. 

Complaint Details : I have reason to believe that the purchase price of our home was purposefully inflated by an estimated {$350000.00} to {$400000.00} above its true market value at the time of purchase. This is not a complaint about the current market prices in the area which will decrease the value of the house by an additional {$200000.00}. At the time of purchase the appraisal came in at $ XXXX and we were led to believe this was accurate. A true valuation would have been $ XXXX $ XXXX based on area market values and comparable properties. The appraisal report was never sent to us and we only received the receipt for payment. I requested the appraisal report after the purchase because I felt things were not right with the condition of the house. When I reviewed the appraisal I saw that the appraiser had intentionally fabricated home features that did not exist, the condition of the home was said to be in very good condition when in reality was in fair condition in need of many upgrades and repairs, and that the house that had been sold to us as a XXXX square foot home but was actually a XXXX square foot home with a basement. The price per square foot was {$880.00} when the average price per square foot in the same zip code was {$390.00}. The low end finishes along with the age, condition and size of the property in no way supports a price of $ XXXX foot. The home comparisons in the appraisal are not comparable to this property. The lot that the house is built on is one of the smallest in the area. This price per square foot is in no way normal for the area and as their clients we should have been made aware of this by the lender or our real estate agents. We were not. XXXX XXXX lived in the area and would have been well aware of the property valuations. 

We have had to make improvements to make the house livable, such as new carpeting in all downstairs bedrooms, new lighting fixtures to increase lumens so it is bright enough to see, shaving, repairing and painting basement walls, so if anything the valuation of the house should have increased. The appraiser claimed the home has high end finishes throughout but it does not ( i.e. 25+ year old shag carpeting, damaged bamboo flooring, popcorn ceilings and walls, plastic insert bathtubs/showers, stained linoleum flooring, plastic bathroom mirror, old fireplace insert with plaster surround ). 

XXXX XXXX has sent us monthly valuation of our home and it has steadily decreased in value according to his market analysis. At the time of purchase the graph shows the house was worth {$900000.00}, with the bump in the graph going to $ XXXX the day we purchased it and then back down immediately after purchase. The housing market had actually peaked the previous month because interest rates had increased by the time of our purchase. This is clear and indisputable graphic evidence of the inflated valuation of the property. 

This fraudulent action has had severe financial consequences for my family, as we are now struggling to meet our mortgage obligations based on an inflated loan amount. My husband has been diagnosed with XXXX and is now completely XXXX. He had to quit his job as an XXXXXXXX and our family no longer has income. At the time of purchase he was struggling with decision making and was reliant on the expertise of the real estate and lender professionals that we hired. We can not sell the house because it needs extensive work that the previous owners and agent/inspector did not disclose, such as foundation repair and driveway replacement which is an additional {$50000.00} of loss. Due to the fraudulently inflated appraisal we owe more than we can sell it for by approximately {$500000.00}. 

Requested Action : I respectfully request that the Consumer Financial Protection Bureau ( CFPB ) conduct a thorough investigation into the actions of XXXX XXXX, my mortgage lender, and review the fraudulent activities that took place during our home purchase process. Additionally, I request that appropriate regulatory action be taken against XXXX XXXX. My primary goal is to rectify the financial harm inflicted upon my family due to the inflated home purchase price and ensure that such unethical practices do not continue to harm other unsuspecting homebuyers. Restitution for the inflated and false valuation should be imposed. My husbands ability to make decisions was impaired at the time of purchase. People who are XXXX, XXXX or cognitively impaired should not be made victims of mortgage fraud by predatory lenders. Protections should be in place and we are asking the CFPB for help. Please enforce the laws and regulations that exist. 

I am willing to cooperate fully with any investigation and provide any additional information or documentation necessary to support this complaint. I have included emails from the lender and agents, pertinent sections of the appraisal and the lenders market valuation of the property. 
Thank you for your attention to this matter. I look forward to a resolution that will help restore fairness and integrity to the mortgage lending process. 

Sincerely, { redacted }