Consumer complaint received 2021-12-01
Company: Lennar Financial Services, LLC
State: VA
Product: Mortgage
Sub-product: VA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
The VA loan guaranty provides a private lender with the assurance that if something goes wrong and you are unable to make the payments, the lender may go to the VA to cover its losses. With your Certificate of Eligibility. While in the underwriting process, I was asked to provide a letter from my commander stating the following : " Provide a signed and dated letter from your Commanding Officer confirming your eligibility to renew and that you intend to remain in service after the expiration of the current orders, XXXX XXXX " I sent a request to my commander on XX/XX/XXXX and she provided a statement of service verifying my service obligation to XXXX. 

The Mortgage officer stated the statement of service is not acceptable. My commander stated that asking for anything outside of a statement of service is personal in nature and disturbs the command relationship. It is my choice to extend and I may do so in XXXX when the window opens up in the system. It is not her responsibility to verify eligibility as my service obligation makes me eligible. 

My questions are 1. Why are Soldiers required to provide this documentation if they have a VA certificate of eligibility.

2. Is the loan applicant liable for a third party 's refusal to sign a document? ( For example I can't force my commander to sign a verification memo.

3. Is the eligibility memo a VA loan requirement regulated by the VA or some federal agency? Is the memo a personal requirement from the financing company or the VA?

4. Do mortgage companies ask " other '' applicants for verification memorandums if so, How do they verify if indeed it is the " commander '' signing the document. Is the memo just a security blanket to assist with the selling of the loan after closing? I would think this is an unfair practice used to against military personnel /veterans on XXXX XXXX I mean do you ask XXXX employees to verify employment for more than 12 months beyond closing? 

5. Is there a reason why mortgage companies don't ask for information upfront? For example my military status was made transparent at initial loan application in which I had plenty of time on my current contract. Due to construction delays, I feel like I'm the one being punished and at risk of losing thousands of dollars in earnest money fees and builder credits if I can't get financing through XXXX The delay is also costing more money because the interest rate has risen since contract initiation. 

The lender keeps saying the memo is a " common document '' the only common document I am aware of is the VA certificate of eligibility. 

I feel this practice is unethical as the XXXX  XXXX does XXXX XXXX XXXX. Does not state that a memorandum of eligibility from a commander is required. There are other documents that would suffice such as a memorandum for record from the service member verifying their own intent to extend beyond the 12 months. This document along with the commanders statement of eligibility makes more sense.

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