Consumer complaint received 2020-05-21
Company: Chrysalis Holdings LLC
State: WA
Product: Mortgage
Sub-product: VA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
XX/XX/XXXX, Applied for a Cash-Out Refinance with New Day to  lower our mortgage rate, eliminate all revolving credit accounts and obtaining additional cash that would aid us during the Covid 19 crisis. 
Submitted all requested documentation within days of request. 
XX/XX/XXXX, Estimated closing date was XX/XX/XXXX. 
XX/XX/XXXX, Completed VA home appraisal. 
XX/XX/XXXX, received our rate lock. 
XX/XX/XXXX, approaching closing date, we requested clarification on the actual closing date. No response over the next 5 business days. 
XX/XX/XXXX, XXXX ( existing mortgage lender ) sent email, offering to place a hold on monthly payments for next 3 months, without impact to credit report, late fees or other negative actions. 
XX/XX/XXXX, No detailed ramifications of the impact the Forbearance agreement would have on our existing refinancing action. 
XX/XX/XXXX, Concerned that we had waited to make the XXXX payment due to the impending closing of our refinance loan, and didn't want to have the loan shown as " Late '' we accepted the XXXX offer to move the payment due date out to the end of XXXX.. 
XX/XX/XXXX, still no response from New Day, we escalated our concerns to Loan Officer 's supervisor, that we have not been able to reach anyone regarding our closing or other urgent issues regarding the economic developments we were experiencing. 
XX/XX/XXXX, received call from Loan officer approximately 2 hours after our escalation call. We explained the urgency of wanting to use the delay with XXXX and would that action interrupt our refinance. 
He then explained that by accepting the offer, we may have jeopardized the closing of the loan. He would get back to us. 
XX/XX/XXXX, We received another request from New Day for our IRS transcripts for tax years XXXX & XXXX. We were informed it could take a few days to obtain. However, we were able to go online at the IRS and get the transcripts within an hour of the request. 
XX/XX/XXXX, we logged onto our loan information on the New Day site and it reflected a closing date of XXXX XXXX 
We had yet to confirm the status of our loan and then received additional request from New Day for our XXXX XXXX earnings ( previously noted as unnecessary ). 
XX/XX/XXXX, we were informed that the XXXX agreement was an issue. But, if we were to make the XXXX mortgage payment, we may receive a waiver for having entered into the agreement unknowingly. 
XX/XX/XXXX, made the XXXX payment to XXXX. 
XX/XX/XXXX, we had not received anything further from New Day. 
XX/XX/XXXX, our request was still under review. 
XX/XX/XXXX, informed that the request was denied and the refinance loan was now dead. 
XX/XX/XXXX, contacted New Day supervisor for clarification. 
Supervisor had many facts about our situation incorrect and non-reflective of our actual circumstances. We updated and defended our position and the supervisor took it forward for another review. 
XX/XX/XXXX, notified by New Day that they would not reverse their decision. 
XX/XX/XXXX, contacted VA Loan Origination department and they notified us that the Forbearance Agreement should have no bearing on our Refinance. New Day disagreed. 

****We were within days of closing this loan, where at that time, no other issues with our funding had been identified by New Day. We " assumed '' that this approval was forthcoming. 
The decision to reject our loan application not only resulted in placing us in a negative credit reporting condition, it also locked us out of finding any other lender willing to make the loan. 
Since, our credit report has reflected a sequence of lower scores, which we'll now have to work hard to repair. 

We are now " stuck '' with the black mark this agreement has created and unable to proceed with any other loan options as a result. 
It will take a couple of months to correct this ill-informed decision, even though we never signed anything with XXXX, or made any other " official '' agreement. 

We acted in good faith with New Day. We could have gone to other lenders, but selected New Day because we felt that as a US XXXX Veteran, we would receive " FAIR '' treatment. I am infuriated that a lender, lauding their respect for all Veterans and their willingness to provide " special consideration '' to us Veterans, would have taken such an underhanded approach.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation