Product: Mortgage

In XXXX of XXXX I refinanced my home with Carrington Mortgage Services LLC to consolidate debt and payoff credit cards. At the time I qualified for a XXXX ARM at 7.99 %. I made a plan with XXXX XXXX ( NMLS ID XXXX ) my loan officer to refinance out of the ARM to a Conventional Fixed Rate 30 year loan once my credit score improved. In XXXX of XXXX we emailed about this and I wa n't ready. Then on XX/XX/XXXX I received an email from Ms. XXXX asking me if I wanted to apply to refinance out of the ARM. I began the application process and sent her my income documentation, consented to a credit check, and submitted a package for underwriting. On XX/XX/XXXX I was advised to complete the My Loan Detail part of the process. I was unable to access the website and was told " it is that educational process where it explains how a mortgage works. They will waive it. No biggie. '' Also on XX/XX/XXXX I received a message from XXXX XXXX, the Loan Processor, where he stated " Congratulations on your overall approval from Underwriting! '' I was asking about this prior to paying for and consenting to the appraisal they ordered. 

The appraisal was complete and it was conditioned that I have to paint the exterior trim of my home due to peeling paint and the age of my home to comply with FHA guidelines regarding lead based paint. I was also informed I would have to get my spouse, who I am separated from, to sign the documents. I again informed Carrington of my pending divorce and that the purpose of the refinance was to fund the divorce settlement and that I would have to enter into an agreement with her to gain her consent for the refinance. I spent XXXX and XXXX negotiating a contract with her to hold the proceeds in escrow pending final settlement terms. I had the house repainted in XXXX and the home reinspected by the appriaser. On XX/XX/XXXX I received an email stating that the only outstanding item was the reinspection report and that they would be able to close with " 24 hrs for underwriting and 48 hrs for closing.If we were to receive the report today we would be on target for early next week. '' Then on XX/XX/XXXX I received a call from XXXX XXXX the regional sales manager telling me my loan had been denied due to my income and an error that was made on their end in the system. I submitted a formal complaint and was refunded the appraisal fee on XX/XX/XXXX. I also received a call on XXXX XXXXfrom a sales rep named XXXX XXXX who followed up with an email stating " I see your mortgage has been paid off and now is the perfect time to take equity out of your home at a low interest rate. If you want to do some home remodeling or debt consolidation now is a really good time to do so. If you are interested please give me a call back at your earliest convenience so we can go over a few options! '' Then on XX/XX/XXXX I received another sales call from XXXX XXXX, a loan officer, asking me to refinance. That same day I also received a Statemement of Credit Denial that failed to list a reason for the denial. 

It is my view that Carrington Mortgage negligently misled me and caused me to enter into a profitable product, 5/1 ARM, in bad faith and looked for any reason they could find to deny my application. As evidenced by their own denial letter, there is no other reason I was denied for this refinance.