Consumer complaint received 2023-05-25
Company: Lennar Financial Services, LLC
State: FL
Product: Mortgage
Sub-product: FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
On XX/XX/ myself ( XXXX XXXX, XXXX ) and XXXX XXXX entered an agreement with Lennar Homes to purchase XXXX XXXX XXXX XXXX, FL XXXX XXXX As part of the agreement we gave a deposit for the property in the amount of {$16000.00} that was refundable if we were not able to obtain a mortgage. The property was under construction with a propose completion date range from XX/XX/2022 to XX/XX/2022, and the builder realtor had a projected date of completion XX/XX/2022 XX/XX/2022. The builder had an incentive of {$12000.00} for buyers to use towards the closing cost, or down payment if they use the builder preferred lender. We agreed to use Lennars financing with Lennar Mortgage, and completed the application jointly by XX/XX/2022. XXXX XXXX was our assigned loan officer to assist with completing the loan application, and getting us approved for the home mortgage. Our first conversation with XXXX we went over our credit history, income, debt and amount of funds available to put down for closing cost. After reviewing all the information with us, XXXX told us the best route for us was to have myself worked with her credit building team. The timeshare with XXXX reported a foreclosure deed in lieu on my credit, and I needed them to change how it is reported on the credit. The goal with working the credit building team was to get my credit high enough to qualify for conventional lending this way we will be able to put less cash down, and not have to pay PMIs. On XX/XX/2022 XXXX ( Lennar Home sale rep ) and XXXX spoke to their XXXX XXXX to sign off to agree to keep the agreement with letting myself work with the credit building team. 
I was working with credit building team and completing all assigned tasks, but my credit did not improve within the first month. It was my understanding I was to work with the credit building team until 60 days prior to closing to attain the credit score needed to attain conventional lending. On XX/XX/2022 Lennar Mortgage filed an Adverse Action on the loan application, and denied the loan while I was still trying to build the credit high enough and correct the timeshare mortgage on my credit. I did not realize the loan was denied until XX/XX/2022 when I open the letter in the mail about the Adverse Action. XXXX never commutated to us about the adverse action about the mortgage to us, and we did not receive the letter in the mail until XX/XX/2022. In that time period between then we were working with XXXX to extend the mortgage contingency on XX/XX/2022 that signed in agreement by all parties on XX/XX/2022. XXXX reached to me on XX/XX/2022 to get an update on the credit report ; on XX/XX/2022 I left a voicemail for XXXX letting him knows there was no change on my credit. I reached out to XXXX on XX/XX/2022 to inquire about the adverse action as well made a verbal request to refund back our deposit. She explained to me that I will need to get an approval from them, and then be denied for the loan in order to get back the deposit. I told her that made no sense to us because why would we get approved for the loan then gets denied for a loan. At this time XXXX and Lennar Homes was not acting in good faith on the mortgage contingency that was in placed. We will not hear any further updates about my credit, or get our deposit back from Lennar. Lennar Mortgage in XX/XX/2022 pulled both mine and XXXX credit again without any communication they were still trying to get us approved after the adverse action. I reached out to XXXX again on XX/XX/2022 to with the proposal that XXXX and her sister XXXX go on the mortgage together. On XX/XX/2022 XXXX XXXX completed the credit application for Lennar Mortgage to co-sign with XXXX XXXX XXXX XXXX was always going to move in with us as she works mostly remote and travels for work. She spends limited time at her home and she wanted to relocate to Florida as well. XXXX reached out to XXXX and XXXX a few days later, and explained that she could not link both of their apps together. XXXX had to fill out a new credit app which will lead to XXXX hard inquiries. On XX/XX/2022 after 16 days of going back and forth with XXXX resending and uploading the same documents on their portal, after we were able to the documents verified the loan application was completed for XXXX and XXXX to be the buyers for the property. 
On XX/XX/2022 XXXX informed us that the loan was conditional approved. XXXX and XXXX started uploading documents on Lennar Mortgage XXXX right away to satisfy the loan approval. XXXX who is XXXX supervisor reached to let us know he will be assisting on the loan to get it to final approval. As XXXX uploaded documents on the portal, she was receiving emails from XXXX asking her to upload same financial documents over and over again. XXXX of the other conditions was to verify employment ; XXXX sent an email to XXXX job using XXXX name on the email instead of XXXX. XXXX and XXXX will send emails to XXXX to verify that he received all the documents he needed to get the underwriters to approval the loan. The response time to certain emails could take up to a week. Examples of the slow email response from XXXX and XXXX on XX/XX/2022 the first mortgage disclosure was disclosed. The rates were 1.5 points higher than we expected after what XXXX first disclosed the rates could be once we got the approval. We reached to XXXX to ask for assistance with the higher rate that XXXX shared with us. On XX/XX/2022 Lennar Homes increase the $ XXXX incentive to $ XXXX to assist with interest rates going up. The next issue beside the rate was on the disclosure was they never mentioned the conditional approval was for FHA and not conventional. XXXX led XXXX and XXXX to believe the conditional approval was for a conventional loan, when she called them both on phone earlier in the month during the loan application process. XXXX knew the goal was to get a conventional loan because of the better rates and not having to PMI. When XXXX reviewed their credit with them she never mentioned the house in GA that XXXX ex allowed to go into foreclosure will not allow her to qualify for conventional loan. XXXX and XXXX would not confirm the timeline of the foreclosure would disqualify XXXX from conventional lending until early XX/XX/2022. The frustration grew to outrage as the XXXX and XXXX would not respond back to any form of communication in a timely manner, along with their responses not leading to straight forward answers. For example, in early XX/XX/2022 XXXX had a phone conversation with XXXX after verifying closing funds about wiring the closing cost to the title company as soon as possible. XXXX requested XXXX to wire the funds that week with confirming the amount to close, or getting the final approval from the underwriters. XXXX followed the advice the realtor not to give them any more funds until we had a closing date along with final approval from the underwriters. 
Lennar homes schedule for the first closing date for XX/XX/2022 as they estimated the home will be completed prior to XXXX. Then the project XXXX reached out that they were running behind construction and needed another week to complete the home. The closing was rescheduled to XX/XX/2022 after XXXX holiday. XXXX and XXXX from XX/XX/2022 have been reaching out to XXXX and XXXX to make sure they were approved for the mortgage, and they had all the documents they needed to close. After completing the final walk through of the home to point out final touches to the project XXXX, Lennar Homes and Lennar Mortgage claimed everything was ready to close on XX/XX/2022. 
On XXXX XXXX XXXX reached out to Lennar Title Company to get the final closing cost. They explained to her that the finance company did not submit a final cost for closing cost, but put the file in suspended status. In the late fashion of Lennar Companies they waited to the respond back to us that following Monday to blame the underwriters for not giving the final approval. They denied the loan because they did not want to give XXXX sisters a loan, and did not want a XXXX family to live in their community. We explained over and over how the family was going to use the home, and they wanted a letter from us with everyones name that will live at the home. 
Lennar Mortgage and Lennar Homes did not give back the deposit stating it was passed the mortgage contingency agreement. They claim that Lennar Mortgage can deny us for any reason, and we will have to live with their decision. XXXX the realtor representing Lennar Homes said her XXXX will allow us to try to get another mortgage outside Lennar Mortgage, but have to use another lender her XXXX suggest we use to get a loan by end of the year. The other condition will be that we do not inform the new lender about being denied by Lennar Mortgage. They introduce us to XXXX XXXX with loan XXXX XXXX XXXX. 
We worked quickly with XXXX XXXX getting the conditional approval for XXXX and XXXX within the first week of the mortgage application. XXXX is a true professional, and she guided us to get the correct information she needed to for the underwriters to get an approval for the mortgage. After XXXX weeks of working with XXXX, we were close to getting a final approval, but we follow the advice from Lennar Homes not telling her about the Lennar Mortgage denying us the month prior. When she went to the HUD on the property with FHA she discover we denied by Lennar Mortgage, and because the claims on the HUD by Lennar Mortgage she will have to take months to get them removed to get us approved for the property. XXXX did tell us if we had disclosed that information to her ahead of time that she could have gotten the approval because she could have worked on getting the HUD cleared up. Lennar Homes cancel the purchase and sales agreement, and kept the deposit as well. XXXX XXXX stated we can use the deposit towards another property with Lennar homes as long as we are under contract within the next XXXX months. We reviewed properties with XXXX, but her XXXX wanted us to put another deposit with them. He stated the first deposit can not be used on a new contract, and no longer our funds because we failed to secure a loan. He went on to state he did not believe we can secure a mortgage due to our credit issues, and we should be thanking him that he will allow a XXXX family to live in his community. We asked for our deposit back because we no longer wanted to purchase a property with them.

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