Consumer complaint received 2017-05-04
Company: MONEY SOURCE, INC., THE
State: FL
Product: Mortgage
Sub-product: FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
On  XXXX   XXXX ,  XXXX , I received a call from a Loan  Officer  by the name of  XXXX   XXXX  at The Money Source which is my existing mortgage loan servicer.  XXXX   XXXX  explained that due to a reduction in the mortgage insurance premium as implemented by the FHA and a downward movement of mortgage rates, The  Money Source were in a position to lower my existing rate of 3.875 % to 3.375 % and  lower the mortgage insurance premium as well, thereby reducing my monthly payment by approximately {$190.00}. I was informed that neither income documentation, credit qualification nor an appraisal would be required. My only qualification criterion would be my perfect payment record on the existing loan. In this arrangement, nothing would be added to the existing loan balance.T he Money Source would pay for the FHA fee and they would process and underwrite the loan at their cost. I however would be responsible for Title & Escrow fees and  Florida state redecoration taxes amounting to a total of approximately {$4000.00} at closing.  XXXX   XXXX  referred to the process as an FHA Streamline re-finance. Disclosure documents were sent to my e-mail address shortly after his call and I signed and returned the documents on-line. Initially, the only additional document that I was required to furnish was a copy of a utility bill and to identify the name and telephone number of my home owners insurance agent which I provided. Several weeks elapsed after which I received a call from  XXXX   XXXX  indicating that due to the fact that loan had not been approved within a time frame reqired by the processing department, a new loan would need to be assembled and disclosed. This was done. This time the loan was different in that the rate was 3.875 % on the basis of Th e Money Source pa ying for all fees, costs and state recordation taxes and I would save approximately {$120.00} monthly. This arrangement suited me because I was previously somewhat concerned about having to provide {$4000.00} at closing. A great deal of time subsequently elapsed with little or no apparent movement on my re-finance.  XXXX   XXXX  did call me from time to time to update me. According to  XXXX   XXXX  the delay was due to a backlog resultant from of an overwhelming response to Th e Money Source Streamline  re-finance offers to it 's customers. I did however learn that my re-finance application was in motion and that it was assigned to a processor by the name of  XXXX   XXXX  who only contacted me via e-mail on  one  occasion to request the same utility bill and insurance information that I 'd previously provided to  XXXX   XXXX . Around this time,  XXXX   XXXX  called me to state that the processing department informed him that the title report showed a second mortgage held by  XXXX . He requested documentation on this loan which I immediately provided. Apart from  XXXX   XXXX , no Money Source personnel ( with the exception of  XXXX   XXXX , who I 'll get to later ), ever attempted to establish contact with me ( except the one mentioned e-mail from  XXXX   XXXX  and one other male processor who called to request what I 'd already provided to  XXXX   XXXX  and  XXXX   XXXX . In  XXXX , I received a call from  XXXX   XXXX  to inform me that the rate lock on my application had expired and that currently available rates were substantially higher. His apology was contrite and assured me that he had left no stone unturned in efforts to ensure that my application was expeditiously processed. He stated that his efforts included numerous e-mails to his supervisor, the processor, her supervisor, and th e Vice President of Processing.   I found him to be sincere because he had proved to be a reliable communication partner and always conducted himself with the utmost professionalism. I expected to receive some written response from The  Money Source stat ing that my application had been rejected, but received nothing. Instead, some weeks later a few days before  XXXX , I received another call from  XXXX   XXXX  to advise that the Processing department was now urgently requesting copies of a survey on the property and an updated utility bill. I provided copies the same day. Shortly thereafter, I received another call from  XXXX   XXXX  stating that The Money Source were declining my loan application because until that point, no subordination request had been submitted by The Money Source to   XXXX    XXXX  and that the required subordination would require approximately another two weeks to get done in a rising rate environment and that The Money Source were not prepared to honor the rate that was offered to me.  XXXX   XXXX  expressed profound apology. He assured me that he had appealed my case all the way to  Executive Vice President le vel, without success. A short while later, received a call from a Loan Officer by the name of  XXXX   XXXX  at the Money Source who confirmed that the rate formerly offered to me was no longer available, but that he was able to offer me 4.125 %, but that the rate difference between what I has originally been offered would be offset by a further reduction of 0.20 % in the mortgage insurance premium which he stated the FHA were poised to approve at the end of  XXXX . Nothing transpired regarding this until early  XXXX   XXXX  when I received a Denial Notice from The Money Source on my application. The date on the Adverse Action/Denial was dated  XXXX / XXXX / XXXX  and he reason stated for the denial was said to be that.. '' CREDIT NOT GRANTED TO ANYONE ON TERMS/CONDITIONS REQUESTED. This is outrageous! This is certainly NOT the real reason for denying my loan. I subsequently spoke with  XXXX   XXXX  and he re-stated the fact that he had advocated on behalf of my application all the way to the level o f Executive Vice President.   XXXX   XXXX  informed me that all of his e-mails and responses thereto were matters of record and that he had copied and pasted them in my loan file in The  Money Source producti on data base called BLITZ. I believe the manner in which I have been treated by The Money Source is unconscionable and I would not be surprised if heir actions are illegal. Their failure to process my loan in a period approximating 6 months is incredible to me. In hind sight, I wish I had cut lose from The  Money Source many months earlier and accepted one of the numerous offers  made to me by other lenders. I 'm a   XXXX     XXXX  and the difference between right and wrong in this matter is as clear to me as the difference between north and south.      XXXX   XXXX   XXXX   XXXX   XXXX

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation