Consumer complaint received 2023-09-29
Company: Southwest Business Corporation
State: NC
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage
Sub-issue: Application denials

Complaint:
On XX/XX/XXXX I received a pre-approval from XXXX home mortgage in the amount of {$380000.00}. I found a home for {$360000.00} and put in an offer. Upon putting in an offer to purchase I received a call from XXXX XXXX, XXXX ID # XXXX the mortgage lender with XXXX whom I had been working with indicating I had been issued the " pre-approval in error ''. When I informed him, I had put in an offer and I had already received the pre-approval, he indicated he could not go through with the loan offer " because you are self-employed ''. I reminded him we had discussed this before I completed the application and before I was issued the pre-approval, he stated he would call me back and I never heard from him again. My realtor XXXX XXXX contacted me shortly thereafter and informed me she had received a call from XXXX stating I had been issued a " pre-approval in error ''. XXXX then reassured me she could help, she referred me to XXXX XXXX with SWBC Mortgage via email. I spoke to XXXX via email and he informed me to complete a formal loan mortgage loan application online. I completed the application on XX/XX/XXXX. I received a call from XXXX XXXX from XXXX and b began to discuss my income and the loan applications with him. I received a call from XXXX XXXX stating she had been informed by XXXX that I never completed the mortgage loan application. I informed her that I had another loan officer contacted me and we were discussing the loan. It was at this point I was told to contact XXXX XXXX. I reached out to XXXX via email and informed him I had been contacted by another agent with SWBC Mortgage to which he stated he would reach out to that agent and inform him he would be working on my mortgage application. I informed XXXX I was instructed to remit {$2000.00} in earnest monies to which he stated I needed to submit payment. I also reached out to XXXX to confirm if I should remit the XXXX monies to the sellers. I inquired about whether or not I should rescind the offer to purchase at which time she stated " no, XXXX will get this home for you ''. XXXX then told me I still had to remit {$2000.00} in earnest monies to the lawyers although I never received a pre-approval from SWBC mortgage. She insisted that XXXX remit payment to the lawyers to begin the process of closing on the home. I then emailed XXXX with SWBC and informed him I had been told to remit earnest monies in the amount of {$2000.00}, he confirmed that I needed to remit payment to the lawyers so I could move forward with the loan to which I did ( email correspondence to support ). SWBC Mortgage lenders are engaging in unethical and illegal practices. Some of the realtors are working with the mortgage loan officers to target people of color. Potential buyers are not receiving pre-approval letters until they agree to accept a loan that has an interest rate of nearly 11 % ( XXXX XXXX to be exact ). They also told me that I needed to have XXXX of reserves in the amount of {$1800.00} for each month and an additional {$94000.00} down. This mortgage loan company ran my credit but when I didn't agree to the terms that was specified in the agent phone call ( XXXX refused to provide this information via email and demands that correspondence occurs via a telephone call ) I received a one sentence email stating my loan was denied. XXXX XXXX is licensed in Virginia XXXX # XXXX, however, he provides potential borrowers with a Viginia zip code so he could be assigned to them even if the borrower lives and is seeking a home in another state. When asked to see the contract in question, the contract that states the interest is nearly 11 % and the downpayment of {$94000.00} is required, XXXX indicates it is too much " legalese and you wouldn't understand ''. XXXX also refers you to a credit repair person named XXXX XXXX who then charges you {$650.00} that begins to " work on your credit ''. However, your credit begins to decline and old items suddenly begin to reappear on your credit report, decreasing your score and making you ineligible for a mortgage loan with other lenders. XXXX encourages you to give him a verbal acceptance of his offer before you are able to obtain a pre-approval letter, if you refuse you are given a denial in the form of a one sentence email ( email correspondence to support ). No further denial is received via email or standard mail. I have all of this information recorded. The realty agent he works with is XXXX XXXX ( XXXX XXXX ), who also worked with me, brings all potential, vulnerable buyers to XXXX. Although I have declined XXXX 's " offer '' he continues to call telling me I will not be able to have the " home of my dreams '' as he knows I would be a first-time home buyer unless I agree to his offer. I declined the home, rescinded the offer to purchase, and the mortgage loan at the rates XXXX specified on XX/XX/XXXX. I received a voice mail message and text from XXXX on XX/XX/XXXX stating XXXX found a way to return my " earnest monies '', however, I would need to forward the email to her of his denial and contact him immediately. However, when I contacted XXXX he wanted to discuss another home and " the special mortgage loan created a few months prior ''. He stated " XXXX home loans was a terrible company and he wouldn't be surprised if they closed down soon '' as he has been " cleaning up their mistake with several other people struggling to buy a home ''. I reiterated to XXXX I could not afford the " special mortgage loan '', and he would not tell me the name of the loan he was proposing nor show me a breakdown of costs. XXXX continued to reassure me in phone calls and texts as recently as XX/XX/XXXX I could afford it. He kept insisting if I accepted this loan, I would have been the first person in my family to own a home. He encouraged me not to discuss this loan with anyone, if I needed to discuss the mortgage loan to communicate with either him or XXXX directly. During the conversation he boasted about " helping other people like me who wanted the XXXX XXXX ''. As per XXXX, he is helping at least 3 people close on a home this month. XXXX 's statement further confirms for me that many people are being exploited in their quest to own a home. 
I was contacted by XXXX XXXX on XX/XX/XXXX, stating there may be a way to get the earnest monies I sent to the sellers back. I sent her the denial email from XXXX ; however, I was encouraged to reach out to XXXX as well. I was told I needed to reach out to XXXX to discuss how this would be done. I contacted XXXX and the only thing he wanted to discuss was the " special loan '' asking me to " ok '' the loan so I could be in my " new home ''. He encouraged me to upload 12months of bank statements in the portal so I could get the approval. I was not comfortable with the downpayment amount he quoted me, the {$10000.00} in reserves, or the 10.37 % interest rate so I did not provide additional documents. I requested a denial notice on XX/XX/XXXX so I can retrieve my earnest monies back, however, he stated he could not provide me with one. He encouraged me to contact XXXX and see if I would get one from them. I reminded him I could not get one from XXXX and reminded him I did not pay the earnest monies until after we had began working together and following his suggestion ( I have email correspondence to support ). I asked him again for a formal denial notice to which he insisted he could not provide. I then reached out to XXXX and told her XXXX would not give me the denial notice and I informed her I would be contacting SWBC mortgage for a formal letter. I contacted the mortgage company on XX/XX/XXXX, however, when I put in my social security number after telling XXXX I would be contacting the company the automated system stated there was no record of my application. 
*The home I put the offer on is also off the market.

Company response to consumer: In progress