Consumer complaint received 2023-01-04
Company: CITY CREEK MORTGAGE CORP.
State: MI
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
I am a real estate professional attempting to file a complaint against a loan originator XXXX XXXX with City Creek Mortgage on a file that has ultimately closed- only after multiple attempts by the loan officer to intentionally tank the purchase transaction, misrepresenting the borrowers ' ability to purchase & otherwise fraudulently get the borrower released from a contract for unknown reasons. 
On or about XXXX I received an offer for purchase as well as a letter expressing buyer interest in the property from buyers ' agent XXXX XXXX. The offer was accepted by my sellers. Buyers conducted a private home inspection according to the terms of the contract. Additional terms were negotiated and the inspection condition was cleared. 
XXXX I receive notice that the buyer is sending a mutual release from the contract under the guise of " no longer qualifying for the mortgage. '' XXXX I receive communication from the buyer agent that she has drafted a release and is in possession of a denial letter from the lender ( I never saw this ) I subsequently talk directly with the loan officer and uncover that the claim of not qualifying for mortgage is being falsified. 
I inform the agent that the buyers are in breach of contract if they are sending a release and my seller will not release their XXXX back to them, as they do in fact qualify for the mortgage. By the end of the day, I receive a message from the agent that she has, " talked them off the ledge. '' I also receive a text from the loan officer XXXX that he has managed to qualify the buyers and we are good to move forward. 
*Appraisal is subsequently ordered. 
XXXX I receive notice from agent that Appraisal is in and value is met, no repairs required. 
XXXX I receive notice from the agent that the Underwriter has issued an additional condition WHICH IS SUPER WEIRD AND UNCOMMON/QUESTIONABLE - The additional condition added by the underwriter involves professional inspection of physical aspects of the property. These are physical aspects that are/were well within normal limits at time of sale, and were not at all noted on appraisal. I do believe that the XXXX supplied the buyer inspection report along with request for conditions to be added to the file in an attempt to get his client out of the contract without forfeiting their XXXX. *this loan officer used to be an underwriter at XXXX XXXX where this file was placed, and presumably has contacts still that he may have leveraged on this file. Again, unknown reason and I am speculating here. But it is so out of the ordinary for this to happen. 
XXXX Requested documentation supplied to lender by me/my seller client to clear the bizarre condition * there was some back and forth regarding blank pages of one document, but the final official clear to close was provided to my by XXXX the Loan officer via email on XXXX. At this point I am informed that the earliest closing could happen is XXXX. 
Closing is scheduled for XXXX XXXX - XXXX I receive an email with mutual release from buyer agent. This time the buyer is assigning the XXXX to the seller rather than requesting it for themselves. 
XXXX - Sellers attorney drafts and sends demand letter to buyers ' agent. Demand letter includes notice of rescheduled closing on XXXX. 
XXXX - We receive notice from our attorney that the buyers have agreed to close ( as relayed by their attorney ) Closing is rescheduled for XXXX XXXX - Buyers do final walk-through and are pleased/satisfied with condition. 
XXXX - Closing - sale is consummated *wire is delayed so occupancy/keys delivered XXXX XXXX - new owners are given access info to the home as wire was received by title & funds disbursed *I understand that the file ultimately closed, but not without much harm to my client. The loan originator attempted to commit fraud by trying to get his client out of a purchase contract on false pretenses and then again by providing INCREDIBLY uncustomary documentation/possible requests for conditions to be added to a real estate purchase mortgage file. I do not think the loan officer customarily supplies this type of documentation on his mortgage files, as it is unheard of from every professional I consulted. I can only speculate as to the reason this loan officer wanted to persuade this buyer to not perform on this contract. I do not know for sure his motive, but redlining has been suggested as a possibility. Regardless, his conduct extends into attempt to commit fraud which was thankfully thwarted. 

Please let me know if additional information or documentation is required.

Company public response: Company believes complaint caused principally by actions of third party outside the control or direction of the company
Company response to consumer: Closed with explanation