Consumer complaint received 2020-04-27
Company: RoundPoint Mortgage Servicing LLC
State: IN
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
Hello and thanks for your help! This is in regard to my mortgage refinance application with Roundpoint : XXXX. 

On XX/XX/XXXX, I initiated a refinance on my existing mortgage with Roundpoint Mortgage Servicing Corporation. My loan officer was Mr. XXXX XXXX ( NMLS ID # XXXX ). Over the next week I was able to complete all refinance documents and my application was conditionally approved. I locked in a 3.75 % conventional mortgage, asking for cash out. Although Mr. XXXX had poor communication during this time -- requiring me to contact him multiple times and leave multiple voice mails for him -- he assured me this was because of the massive volume of refinance requests that Roundpoint was experiencing. I thought this was an adequate explanation for his poor communication. 

Roundpoint acknowledged receiving all my documents by XX/XX/XXXX. Everything looked good. The underwriting stage went very well. I have excellent credit ( over 750 ), no late payments, good debt to income ratio, with a long term professional job. My loan was conditionally approved on XX/XX/XXXX, dependent on the appraisal. I was told that I would pay the first {$100.00} of the appraisal, with the remaining {$400.00} put on the new mortgage. I found that acceptable. I waited for Roundpoint to contact me about the appraisal. This took some time because, I later found out, Roundpoint thought they had given me the information for scheduling the appraisal, when they had not. 

I was contacted on XX/XX/XXXX saying that my appraisal from XX/XX/XXXX was canceled due to inactivity, and Roundpoint wanted me to get this done. I was surprised about this because I had been waiting on them. They thought they had told me about the XX/XX/XXXX appraisal request, but they had not. This wasn't a problem, however. I was able to schedule the appraisal on XX/XX/XXXX, and things proceeded as normal. Ms. XXXX XXXX came to our house on XX/XX/XXXX, taking photos of our home and proceeding with the appraisal. 

I received a call from XXXX XXXX, Roundpoint Loan Processor, on XXXX, XX/XX/XXXX. XXXX reported that there was a problem with my loan. She didn't elaborate much, but said that my house is a manufactured home on a block foundation ( that is true ), and that it was built before XXXX ( that is true ). There was some FHA policy or law that said the loan couldn't go through. She said she would inquire with her supervisor about this. 

On XX/XX/XXXX I received a document denying my conventional mortgage. All the document indicated was that I had " unacceptable property '' with no further comments. I contacted Roundpoint several times, by email and by voicemail, but they would not return any calls or emails. I contacted the appraisal company to find out what my appraised value on my house was, and they forwarded this request to Roundpoint. I contacted the appraiser, Ms. XXXX, who wrote that Roundpoint canceled the appraisal without her completing it. 

This was very confusing to me. Why was this conventional refinance canceled? Why was it canceled before the appraisal was completed? What did an FHA rule have to do with my application, when my application is not an FHA refinance but rather a conventional refinance? 

I sent these questions to Roundpoint, specifically XXXX XXXX and XXXX XXXX. I did not hear back. I contacted them again, again via email and voice mail. Finally, Mr. XXXX called me on XX/XX/XXXX. He explained that my loan did not qualify because it was a manufactured home built on a block foundation before XXXX, which was ineligible because of an FHA rule. 

I explained to Mr. XXXX that Roundpoint had refinanced my house before, in XXXX. The loan went through back then, so why was it not going through now? I told him that I wanted a thorough answer to my question. I also told him that I wanted the refinance to go through. But if it could not, I wanted my {$100.00} dollars back. I had paid {$100.00} for an appraisal, but Roundpoint canceled the appraisal before it was completed. Therefore, I shouldn't have paid for it and I wanted it returned. Mr. XXXX said he would look into it. That's the last I've heard from him. 

I sent another email ( and left voicemails ) on XX/XX/XXXX. I told Roundpoint that I expected to hear from them promptly regarding why my loan was canceled, and also the matter of the {$100.00}. Again, I sent these inquiries to Ms. XXXX and Mr. XXXX. I received a phone call from Ms. XXXX, who reported that she did not have the authority to cancel a loan application, and that Mr. XXXX was the responsible party. I thanked her for her time. Mr. XXXX has not contacted me. 

So, I still don't know why my loan was canceled. Here 's what I do know : 1. Roundpoint has refinanced this same property before, back in XXXX. I was able to work with them and complete the refinance at that point, so why not now? In XXXX, there was no problem with a manufactured home on a block foundation built before XXXX. Why does that matter now? 
2. My loan application clearly shows that this was a conventional mortgage refinance, not an FHA refinance. So why does an FHA rule apply to this loan? What is the FHA rule exactly? 
3. I paid {$100.00} for an appraisal that did not finish because Roundpoint canceled it. If they canceled it before the appraisal was completed, then I should not have been required to pay for the appraisal. If they canceled it after the appraisal was finished, then I should be responsible for the appraisal fee. According to the appraiser, the appraisal was not completed. 
4. Communication from Roundpoint has been abysmal. I have called them a dozen times, and emailed as many. I've provided copies of those emails. I've been a very good Roundpoint customer, always on time with my payments and never missing a payment. But the way they have dismissed this application without clarity is really disappointing and stressful. It's a very stressful time right now due to Covid19. And financial stress is a really big part of it. To have Roundpoint cancel my application, without an explanation, only increased my stress. I was looking forward to lower monthly mortgage payments ; I needed those lower monthly mortgage payments. So this has been an awful experience. 


Many thanks ahead for your help on this matter! 
XXXX XXXX XXXX, XXXX  XXXX XXXX XXXX XXXX  XXXX, IN XXXX Roundpoint application : XXXX

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