Consumer complaint received 2023-09-07
Company: DAS ACQUISITION COMPANY, LLC
State: MO
Product: Mortgage
Sub-product: FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage
Sub-issue: Confusing or misleading advertising or marketing

Complaint:
On XXXX  XX/XX/XXXX, My husband, XXXX XXXX, was referred to XXXX XXXX of USA Mortgage in XXXX, Missouri in regards to a home loan by our realtor, XXXX XXXX with XXXX XXXX. My husband, XXXX, contacted XXXX XXXX via phone call to inquire about home loans and pre-approvals. XXXX XXXX then started a correspondence with XXXX XXXX and myself through both email and text message ( see XXXX   XXXX ). XXXX XXXX asked XXXX and I for various documents, including proof of income, taxes, and a copy of our IDs ( see XXXX XXXX ). XXXX provided his pay stubs from his current job at the time and XXXX previous ones. I, XXXX XXXX, provided my 1099 statements as I am a XXXX employee ( see XXXX XXXX ). XXXX XXXX asked for proof of me being a college  student for the last couple of years, in which I provided as well ( see XXXX XXXX ) as he said that because of my self-employment they would need my college history ( see XXXX XXXX ). XXXX XXXX asked to run a credit check, in which XXXX credit was high enough but mine was not. XXXX XXXX instructed us via email and text on ways to help raise my credit ( see XXXX XXXX, XXXX ). XXXX and I made payments so that our credit score would rise. Once I received notice of my credit improving, I contacted XXXX XXXX so that we may continue the process ( see XXXX XXXX ). We were given a pre-qualification letter for {>= $1,000,000} on XXXX XXXX ( see XXXX XXXX ). After receiving the pre-qualification letter, we looked at houses and put an offer in on a house, XXXX XXXX XXXX XXXX, MO XXXX. The seller accepted our offer. After the offer was accepted, we contacted our realtor and put our house, XXXX XXXX XXXX XXXX XXXX, MO XXXX, on the market for {$170000.00}. Our realtor, XXXX XXXX, contacted one of his clients, who then viewed our house and made an offer within XXXX hours of it being on the market on XX/XX/XXXX. The clients offered the asking price, so XXXX and I agreed and signed a contract immediately. Within the next few days, the buyers of our house had inspectors over on XX/XX/XXXX. The private home inspector found little wrong with our house on XXXX, and we agreed to make all modifications that were asked of us ( we were asked to fix a banister and a drain ). While this was taking place, we paid for a private home inspection on the house we were wanting to buy in XXXX. The inspector found some major problems on XX/XX/XXXX, but the seller agreed to make all necessary repairs that were asked. While this was happening, XXXX XXXX and his assistant contacted XXXX and I asking for various forms and verification of incomes ( see XXXX XXXX, XXXX ). I also stated in a text to XXXX XXXX that his assistant was asking for two years ' worth of W2s but that I was a XXXX employee and did not have these ( see XXXX XXXX, XXXX ). My employer and office manager filled out the Verification of Income letter and returned it to me. I then took a picture and sent it to XXXX XXXX XXXX, XXXX ( see XXXX XXXX, XXXX ). After the income letter and documents were turned in, we were notified that we had made it into processing ( see XXXX XXXX ). During processing, on XX/XX/XXXX, I decided to go shopping for a loan. I contacted an agent with XXXX Mortgage out of XXXX, Missouri. She had me forward all of our information so that she could give us a quote. This agent called me the next day, very upset. She informed us that XXXX and I needed to find a way to get out of the sale of our home. She informed us that the loan would not go through. She stated that on our application it showed I was not self-employed ( which I had stated I was multiple times throughout the course of contact with XXXX XXXX and assumed they had filled it out as such ) ( see Addendum XXXX ) and did not have XXXX years ' worth of XXXX on my taxes, that XXXX had XXXX many late payments on our mortgage, and some late payments on installment loans. She informed us that USA Mortgage was not going to be able to close on our loan. Not only that, but also that we should have never been pre-qualified in the first place. She also informed us that my Verification of Income and Employment letters should have come directly from my office and not accepted via text from me. After receiving this call, I called our realtor, XXXX XXXX, immediately. He then informed me that there was no way out of the selling of our house due to the inspection already being done, agreed upon, and signed. Our realtor contacted XXXX XXXX immediately and asked him for clarification and for help. XXXX XXXX had led our realtor and ourselves to believe that this loan could go through, and we would be okay ( see XXXX XXXX ). XXXX XXXX reached out to us, after stating that things would be fine, to inform us that there were other things needed so that the loan would go through ( see XXXX XXXX ). XXXX XXXX stated on a phone call with me that he had the approval but needed to get our debt-to-income ratio reduced so that the loan would not have to go into manual underwriting. XXXX XXXX stated that because we were part of the COVID-19 forbearance, if the loan went into manual underwriting that it would not be approved. XXXX XXXX offered to find us a house with my income only or to try a different route ( see XXXX XXXX ). I immediately contacted the agent with XXXX, who assured me that there was no way any loan would go through with my income, or XXXX late payments without fraud. She informed us that we would not qualify for a loan until at least XXXX of XXXX. XXXX and I were shocked and very upset. We ceased all forms of communications XXXX XXXX XXXX see XXXX XXXX ). XXXX XXXX emailed us a denial letter ( see XXXX XXXX ). The denial letter further proves what the XXXX Mortgage agent had told us, that we should have never been given a pre-qualification based upon delinquent payments ( see XXXX XXXX ). We immediately began scrambling, packing and trying to find a place for our family to stay. We had to move into my sisters home and renovate her garage into a bedroom until further notice. 
We were looking to buy a house so that we could expand our family and relax. We loved our house on XXXX XXXX and the beautiful memories that we made with our family. Our family was comfortable and had a great quality of life. Unfortunately, I am a first-time home buyer and had no clue about late payments, installments, the process of VOE letters and such. Had we not been fraudulently pre-qualified, we would have never begun the process of selling our home. We would still be living at XXXX XXXX, our daughter would not have had to switch schools, and we would not have to spend so much unnecessary money. The mental and emotional burdens that we have all had to bear have been extremely hard on my family. XXXX and I made the mistake of trusting XXXX XXXX and USA Mortgage with XXXX of the most important decisions and milestones in our life. We trusted that XXXX XXXX and his team were knowledgeable about the FHA and home loan process, procedures, and documentations. It appears that this assumption was wrong and that our trust was misplaced. Unfortunately, it has led to XXXX, our XXXX kids, and me being un-homed and displaced.

Company public response: Company disputes the facts presented in the complaint
Company response to consumer: Closed with explanation