Product: Mortgage

This is related to previous case CFPB Complaint No. XXXX. 

Attn : XXXX XXXX XXXX  XXXX Thank you for taking the time to respond to my complaints about the unfair and unethical dealings that I encountered from for XXXX XXXX and Loan Depot. However, I am very frustrated with your response and the responses further prove my point of unethical and unfair practices from the Loan Depot. 

1. Intentional misinterpretation of my complaints and perversion of the truth My complaint is about the unethical and predatory nature of the loan processing practices from the Loan Depot which led to the denial with interesting timing ( indicating collusion with XXXX XXXX ) and with un-supported reason ( insufficient fund, although documents that I provided from XXXX XXXX bank CD statement indicating $ XXXX deposit available to support funding of XXXX down-payment ). 

However, comments in second paragraph of your response ( and copied below ) deliberately misconstrued my complaints and perverted the truth. 

" To summarize your complaint, you signed an agreement with XXXX XXXX to purchase a home and asked if you could use XXXX  XXXX XXXX as your lender, but that XXXX XXXX did not agree to your financing preference. You completed a Cash-Out refinance on your home to show you had more funds available to pay the higher rate XXXX offered you. 

As mentioned above and in my original complaint, sufficiency of funding has been well supported using my bank statement BEFORE and independent of my cash-out loan. The cash-out was only conducted to hedge against the predatory nature of your loan practices with unreasonably high rate. Offer letters from both XXXX XXXX XXXX XXXX cash-out refinance and XXXX  XXXX  XXXX are evidences of the predatory nature of your loan practices, where your rate is 2 % higher and the unfair bar that XXXX XXXX  and Loan Depot set up to " XXXX other finance companys service in order to gain the extra profit. 

Per NC Mortgage Lending Act, Senate Bill 904, duties imposed on mortgage brokers including to Make reasonable efforts, with lenders with whom the broker regularly does business, to secure a loan that is reasonably advantageous to the borrower. This provision should severely limit steering to more expensive loans and excessive broker kickbacks. 
Safeguard and account for money handled for borrower. 
Follow the reasonable and lawful instructions of the borrower. 
Act with reasonable skill, care and diligence. 


Your above-mentioned practices are in violation of the Act and the NC Predatory Lending law.

2. Misrepresenting/concealing facts, not acting in good faith, or unfair dealings in loan processing and your response You stated below in your 9th paragraph " Per your purchase contract, close of escrow was required on XX/XX/2022. Because you were not able to provide the XXXX mortgage statements in time, your contract was cancelled, and the loan could not be approved. On XX/XX/2022, loan Depot mailed you a Statement of Credit Denial, Termination or Change notice, informing you that your loan was denied. The reasons stated, insufficient cash for down payment or closing costs and insufficient reserves, were listed due to the fact that your monthly obligations, total outstanding debt, and payment status could not be verified without the XXXX mortgage statement. 

Per NC Mortgage Lending Act, prohibited acts that apply to mortgage bankers, brokers and loan officers include : No brokering a loan in violation of the NC Predatory Lending Law. 
No misrepresenting or concealing facts, making false promises, or false advertising. 
No fraud, not acting in good faith, or unfair dealings. 

The referred closing date of XX/XX/XXXX has NEVER been disclosed to the buyer and the buyers agent ( please see buyer agents statement in attachment ). Per the contract, the seller and title company need to notify the buyer of such date in XXXX8-hour advance before the closing date. However, the seller and title company have failed to do so after the two originally estimated closing date of XX/XX/XXXX and XX/XX/XXXX were postponed due to the delay from the builder. 

In addition, this statement of " your monthly obligations, total outstanding debt, and payment status could not be verified without the XXXX mortgage statement indicates predatory, bad-faith and unfair dealings since a ) Mortgage statement availability date varies, which the Loan Depot is fully aware of given being the # 2 independent mortgage service company. It is NOT a fair and good-faith request to deny a loan with closing date of XX/XX/XXXX by asking for a document that could only be available up to the XXXX of the month! 

b ) There are many other alternatives to verify up-to-date payment and financial obligation. However, the Loan Depot NEVER contacted the borrower for a reasonable solution and instead just followed your partner ( XXXX home ) to reject the borrowers application. It is a violation for the Fair Lending Act and another evidence of not Act with reasonable skill, care and diligence. 

c ) Even taking a step back, with everything else that I have provided ( $ XXXX XXXX income etc. ), how could the {$1500.00} ONE-month payment become the deal-breaker? 


3. There are two more evidences from your response indicating perversion of the truth and act NOT with reasonable skill, care and diligence. 

a ) You stated in the 10th paragraph that I " elected to complete financing with XXXX Mortgage Solutions to receive the sellers incentive towards the closing costs. As mentioned multiple times before, I had no option as indicated by XXXX from XXXX home that going with XXXX Mortgage is the ONLY choice for the deal to go through. Therefore, there is no option for me to elect from. 

b ) You stated in the 8th paragraph " New disclosures were provided which you signed, and the rate was locked on XX/XX/2022. Subsequently the Loan Estimate was delivered to you, and the rate lock agreement was sent to you on XX/XX/2022. 

Per XXXX XXXX email, the loan has been locked on XX/XX/2022 instead of XX/XX/XXXX per your statement.