Consumer complaint received 2023-10-06
Company: Lennar Financial Services, LLC
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage
Sub-issue: Delays with the closing process

Complaint:
Dear Consumer Financial Protection Bureau, I am writing to file a formal complaint against Lennar Homes and Lennar Mortgage LLC ( XXXX  # XXXX ), both of which operate as a cohesive entity, regarding a series of issues and inadequacies that I have experienced during the process of obtaining a mortgage loan for the purchase of a condo in XXXX XXXX. This complaint concerns multiple aspects of their conduct, including inconsistent and delayed closing disclosures, a refusal to provide crucial financial information before closing, and recurring errors in calculating closing costs, among other matters. 

I am a hardworking public service employee that has worked hard to save up for buying a house. Also I have zero knowledge or experience in real estate. That been said I like to provide a comprehensive account of the situation, I will outline the sequence of events that have transpired : On XX/XX/XXXX, I applied for a conventional mortgage loan to purchase a condo from Lennar Homes, who had advertised an attractive mortgage offer with a lower interest rate of XXXX XXXX and a promise of {$10000.00} in closing cost assistance for their XXXX  project in XXXX XXXX XXXX 

During the approval process, Lennar Mortgage informed me that in order to qualify for the loan, they would need to lower the interest rate to XXXX XXXX. I agreed to pay the difference in points costs to facilitate this change, but they offered to cover the cost themself and we signed a specific agreement to this effect. 

I received pre-approval for the mortgage and subsequently signed a purchase agreement on XX/XX/XXXX, with the initial closing date set for XX/XX/XXXX. 

However, due to various issues and inadequacies in Lennar Homes ' and Lennar Mortgage 's business practices, we were unable to close on XX/XX/XXXX. The closing date was extended to XX/XX/XXXX, but I faced obstacles caused by them and were unable to close due to the same issues. 

The closing date has now been set for XX/XX/XXXX. However, I have been informed by the lender that I am required to pay for a rate lock and the interest from XX/XX/XXXX to XX/XX/XXXX, even though the delays were not on my side. Furthermore, the seller has decided not to honor the signed agreement regarding the points to bring down the interest rate and lastly my agreed downpayment of XXXX now is required to be {$100000.00} or I will be in default and lose my deposit according to them. 


Now, I would like to detail the specific grievances that constitute my complaint against Lennar Homes and Lennar Mortgage : Inconsistent and Delayed Closing Disclosures and Lack of Transparency : Throughout the process leading up to the initial closing date, I received multiple closing disclosures ( approximately XXXX ) without any explanation for the changes. Each time a new Closing Disclosure ( CD ) was issued, the total closing cost differed from what had been initially agreed upon. Despite numerous attempts to rectify these discrepancies, the discrepancies persisted. Just one day before the initial closing, I received an updated CD that showed a cash-to-close amount {$7000.00} higher than agreed upon due to errors made by Lennar Mortgage. They did not mention these extra costs just a day before closing and they were expecting I would accept and go on with it but I refused to close on XX/XX/XXXX and therefore we agreed to extend it to XX/XX/XXXX. 

Last-Minute Cost Increases and Refusal to Provide Closing Disclosure Before Closing Day : After missing the initial closing on XX/XX/XXXX, Lennar agreed to extend the closing date by another month, then to rectify their mistake the next day on XX/XX/XXXX they provided a corrected closing disclosure. However, despite my constant request, they failed to provide an updated CD three days prior to closing. A week before I asked for an updated CD because there were some minor changes in the prepaid section. Despite my constant request, Lennar did not provide what I asked for. It was only two days before the new closing date, after I formally requested a copy or indicated my intention to file a complaint, that they finally sent me an incomplete CD, which lacked crucial information. On the day I met with the notary to sign, I noticed the CD that he had for me to sign was entirely different from what I had received previously and most importantly it was also different from what we had agreed upon on the CD that was issued XX/XX/XXXX. These actions not only indicated an attempt to mislead me by not providing the accurate cost they intended to charge but also resulted in XXXX missing the closing once again. 

Recurring HOA Fee Calculation Errors As if these issues were not enough, after the second closing date, XXXX XXXX, I was informed that they had once again made an error in calculating the HOA fees. According to this new cost estimate, I would not qualify for the mortgage unless I provided a 20 % down payment, significantly higher than our original agreement. However, this issue had already surfaced at the beginning of the process as well. On XXXX XXXXXX/XX/XXXX, the loan officer reached out to me, acknowledging his mistake and mentioning that the new HOA fee amount of {$640.00} causes a critical factor in loan qualification. To meet the requirement according to the lender I had agreed to increase my down payment from {$69000.00} to {$71000.00}. Now after XXXX months they used same matter which seems fishy to raise my down payment from XXXX to XXXX This situation presented me with an ultimatum to provide additional funds or withdraw my application. 

I again agreed to pay a higher down payment draining all my retirement and saving accounts. Now, with a closing day set for XX/XX/XXXX, not only do I have to provide a much larger down payment, but I am also being compelled to pay fees to lock the rate and cover interest from XX/XX/XXXX to XX/XX/XXXX. They have refused to move the closing day to the end of the month, which would help reduce costs. They already have a deposit from me, and I fear that if I don't accept these conditions, I may risk losing my deposit. 


In light of these ongoing issues, I am deeply concerned about the conduct of Lennar Homes and Lennar Mortgage, which might be in violation of established regulations and ethical standards. I kindly request that your office thoroughly investigate this matter to ensure that my rights as a consumer are upheld and that appropriate actions are taken to rectify the situation. 

Furthermore, I seek your assistance in resolving this matter promptly and ensuring that I am not unfairly burdened with fees and charges that result from the lender 's actions and delays beyond my control. 

Please contact me if you need more details or supporting documents for the incidents mentioned in this complaint. 

Thank you for your attention to this matter. I look forward to a prompt and thorough investigation and resolution. 

Sincerely,

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