Consumer complaint received 2022-03-07
Company: Security National Financial Corp
State: GA
Product: Mortgage
Sub-product: FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
In XXXX of XXXX I applied for a mortgage loan through Security National Mortgage Company and submitted all of the required documentation to support the requested loan amount. I begin searching for a property and on XX/XX/XXXX, I went under contract on property address XXXX XXXX XXXX, XXXX, Georgia XXXX. My realtor submitted my application to the lender and my file was sent to processing and thereafter underwriting. I was notified by my loan officer XXXX XXXX that the underwriter suspended my file due to her assuming that my IRS payment plan amount would be {$500.00} instead of the actual amount which is {$390.00}. My loan officer notified her that my payment was not the assumed amount of {$500.00} and that he would get the proper documentation showing what the actual payment was and upon being notified by my loan officer on what was required I immediately submitted the proper documentation. Thereafter, my loan officer submitted the documentation to the underwriter who then came back and stated that she was suspicious of my increase in income and failed to take my file out of suspense. 

I run a legitimate business and have filed taxes on my business since XXXX, I submitted my XXXX and XXXX tax returns that were submitted and accepted by the IRS which is how I was able to show the payment plan that I am currently on and making monthly on-time payments. 

The underwriter then came back and stated that they would close the loan but needed two more weeks to work through the file ; however, my loan officer suggested that I transfer the file because the lender XXXX XXXX XXXX  XXXX stated that they could close the file in 7 business days. 

With the possibility of me losing the home that I was under contract on I made the decision to have my file transferred and submitted and sent a letter to Security National Mortgage Company requesting that my file be transferred. 

My file with XXXX XXXXXXXX XXXX XXXXXXXX was at the point of being cleared to close when they notified me that Security National Mortgage Company entered a Mortgage Credit Rejection into the system stating that my taxes were fraudulent. She also stated that my profit and loss statements were fraudulent which was also inaccurate. 

The new company stated that they would have to overcome this erroneous rejection that was placed on my file after I requested it to be transferred to the new lender and they were going to do so but of course by this time and with all the going back and forth with the previous lender the Seller decided to put the house back on the market and I lost not only my earnest money funds of {$4000.00}, the appraisal fee in the amount of {$570.00}, the inspection fee of {$370.00} and a place to call home as I now have to find a rental because I did not sign my new lease. 

I strongly believe that this was done out of spite to me because I transferred my file to a new lender and if I am not mistaken, I have that right to transfer my file in the event I feel that the company was not operating under fair business practices. 

I would like to know what can be done because I am sure if this has happened to me that others will be impacted in the same manner which is very unfair to any homebuyer seeking a mortgage loan. Please HELP!

Company response to consumer: Closed with explanation