Consumer complaint received 2017-09-23
Company: Security National Financial Corp
State: TX
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
Thank you for considering this. I am a decorated war veteran who was subject to predatory lending and held captive to close. I was able to talk to the President of the closing company ( XXXX XXXX XXXX  XXXX ), who did let me talk to the Vice President of Quality Control. However, the VP informed me the original loan was with their sister company ( XXXX XXXX XXXX XXXX XXXX ) and they do not control their actions. It was an unofficial way of informing me they are not responsible. I have never been able to talk to anyone with XXXX XXXX XXXX XXXX XXXX. The original manager XXXX XXXX during the process and all was lost in communication afterwards. 

Bottom line is I borrowed a construction loan of {$350000.00} to build my house and the permanent loan ended at {$410000.00}, which was supposed to be one-time close. ( The screenshot labeled [ attached XXXX XXXX XXXX at XXXX ] shows the lender saying it is a construction loan, at bottom of email, ( one-time close ) ). ( This same screen shot also shows the construction loan was not cleared by the underwriter ( written 7 days after I closed on the construction ) for closing and it infuriated me since we already closed. It was not right from the beginning ). I met the requirements of the {$350000.00} loan but the final loan amount was added by the lender through predatory practices. My house payment went from {$2300.00} a month to {$3300.00} a month, which I can not afford. The screen shot below shows I was only ever approved for {$380000.00} ( which was the max i could afford ),  then somehow it jumped to {$400000.00} in XX/XX/XXXX. The screenshot starts with the lender when she was at a previous company which only further reiterates the fact I was only approved for {$380000.00}. That was my max loan amount so I NEVER should have ended with a {$410000.00} loan. 

There is a lot going on with this loan ; way more than needs to be. 

This process started with a construction loan, XXXX XXXX XXXX XXXX XXXX, for {$350000.00} ( attachment XXXX XXXX XXXX   XXXX XXXX ). Before I closed on XX/XX/XXXX, I received a loan estimate on XX/XX/XXXX ( attachment XXXX XXXX XXXX XXXX XXXX XXXX ), from XXXX XXXX XXXX, which sole purpose is to disclose my permanent loan costs. It shows {$520.00} due to customer. The original loan was intended to be a construction loan ( one-time close ), which would be refinanced at the permanent loan closing, which should be streamlined and no additional costs. The original lender even informed me, my wife, and my builder that all costs are addressed with the original closing on XX/XX/XXXX. I paid {$12000.00} in cash at closing to address the permanent loan after the house was complete. 

On XX/XX/XXXX, I emailed and text the lender to ensure I would not owe anything at permanent loan closing, estimated for XX/XX/XXXX. The numbers did not look right, but she ensured me everything was ok. She said she already sent the closing disclosure to me, which shows I do not owe anything. During the closing, I signed a 2nd lien for the builder but did not understand what it was. I asked the lender and the title company at the closing table. The lender said it was already covered in the disclosure. I asked her if I would owe additional money at the permanent closing. She said the max I would owe was the {$370000.00}, minus the {$12000.00} i was paying at closing. The builder was at the table with me and can verify. Therefore I signed, as did my wife. 

On XX/XX/XXXX, I signed an extension ( attachment XXXX ) on the construction loan that extended it until XX/XX/XXXX. I did not receive an accompanying Loan Estimate after the extension. 

On XX/XX/XXXX, I received a second final permanent loan estimate for {$380000.00} ( attachment XXXX ), which was {$30000.00} plus the original final loan estimate from XX/XX/XXXX. I questioned it and did not sign it. 

XX/XX/XXXX, the last draw for construction was turned into the lender, from the builder. We were supposed to close on XX/XX/XXXX, which was annotated on the first loan extension signed in XX/XX/XXXX. It gives the actual date and the builder passed all inspections and was ready.

On XX/XX/XXXX, I signed another extension ( IN PROTEST because it was the lenders fault for the extension [ the builder and I met our terms of the extension ] ) ( attachment XXXX ). I was told by the lender 's manager to sign it or they would foreclose on me. Again, I did not receive an accompanying Loan Estimate after the extension. I was told we would close on XX/XX/XXXX. I was forced to continue to pay interest payments on the loan even though this was an issue on the lender and not on me nor the builder. 

On XX/XX/XXXX, the lender asked that I do another appraisal because my LTV was not enough. I paid for the appraisal, but disputed this because the original loan had the LTV meeting the requirements. I did not go over the budgeted amount for construction so how did the LTV get thrown off? The original construction loan shows my appraised value at {$420000.00} and I only borrowed {$350000.00}. 

On XX/XX/XXXX, I received another permanent loan estimate for {$400000.00} ( attachment XXXX XXXX XXXX XXXX ) and it shows {$6200.00} cash due from borrower to close. I protested this amount. Please note, the amount due, {$400000.00}, is exactly 95 % of the loan appraisal value. It also shows the Estimated Total Payment and Payoffs is ( bottom of Page 2 Closing Details ) {$390000.00}. 

On XX/XX/XXXX. I receive a new appraisal that shows the value of my home has increased to {$460000.00} from {$420000.00}, which led the lender to suddenly increase my loan amount. 

On XX/XX/XXXX, I received another permanent loan estimate for {$410000.00} ( attachment XXXX XXXX XXXX XXXX XXXX XXXX ). The same Estimated Total Payment and Payoffs ( bottom of Page 2 Closing Details ) is {$400000.00}. The loan increased without me using any more money since my last construction loan draw was on XX/XX/XXXX. I met the original loan amounts as did the builder. 

We closed on the permanent loan but was met with even more disagreement. They told me it was not a construction loan and that I would owe an additional {$7100.00} at closing. I informed them this was {$40000.00} more than what I originally borrowed and could not afford this loan. I have months worth of back and forth with the lender showing I argued this vehemently. I was only originally approved for {$380000.00} ( attached screen shot ) since that was the max my salary could afford. I stated this numerous times and that is how I know the loan was never supposed to be this high. The ending loan amount ended at {$410000.00}. My payment went from {$2300.00} a month to {$3300.00} a month. 

Plus, because the loan increase so much, I was forced to have mortgage insurance which raised my payment by {$250.00} a month. 

I kept sending emails, texts, and made phone calls to find out what was going on. The process was delayed months because they realized there was a problem. I even pointed out to them the Rider to the Deed of Trust only shows I owe {$350000.00} ( attached XXXX XXXX XXXX XXXX {$350000.00} ), which supports my entire argument. 

I was told they would fix that and low and behold, it suddenly changed. I had to sign a document at the end because they would not let me close on the house. 

The final permanent loan was also incorrect since I went through the Texas Veteran Land Board for a lower interest rate. For the TVLB to guarantee the loan, the loan can not be a refinance. After discussing the problems with XXXX XXXX XXXX XXXX XXXX and XXXX XXXX Mortgage, the TVLB guaranteed me the loan can not be guaranteed by them. 

The loan is riddled with issues and is why the loan has not been sold. It can not even make it on the scratch and dent market submarket because there are so many issues with the loan. 

I have emails, texts, and documents to support every single line of this text. I even have an email from the manager who admits mistakes were made. I will provide all documents necessary to support any item of this claim. 

Throughout the process, I was continually reminded that I have to close or they will foreclose on me. No working with me or giving me answers on what was going on. 

I am also including the original contract with the Builder ( XXXX XXXX XXXX XXXX ). The builder carried a second lien, which is in the construction loan closing docs ( attachment XXXX XXXX ) from XX/XX/XXXX.

Company response to consumer: Closed with explanation