Consumer complaint received 2021-08-10
Company: Fairway Independent Mortgage Corporation
State: NC
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
Summery Complaint Fairway Independent Mortgage and its representatives XXXX XXXX XXXX, Senior Loan Officer NMLS ID XXXX and XXXX XXXX, Senior Loan Planner, NMLS XXXX ( further referred to collectively as Fairway ) caused unnecessary harm to BUYER and BUYER ( Buyers ) who submitted an application ( Application REMOVED ) to purchase XXXX XXXX XXXX XXXX, NC of timely loan processing and fair protection under the Equal Credit Opportunity Act, Consumer Credit Protection Act and Fair Credit Reporting Act. The negligence of Fairway rendered the Buyers homeless for a period of 35 days. The buyers and three additional family members were forced to live in various hotels, dispose of furniture, endure the utter financial hardship and shame of losing a home as well as the purchasing of clothing and other personal items, additional XXXX, self-storage units, transportation fuel, PO Box , and more during this period. 

Buyers BUYER and BUYER seek monetary damages from Fairway Independent Mortgage and its representatives from the XXXXXXXX XXXX XXXXXXXX : XXXX XXXX XXXX, Senior Loan Officer NMLS ID XXXX XXXX ( office ) XXXX ( cell ) XXXX XXXX, Senior Loan Planner NMLS XXXX XXXX ( office ) XXXX ( cell ) in the amount of {$180000.00} for improper delay in application processing causing financial harm. 

Fairways failure to adhere to Federal Regulation B 12 CFR 1002.9 30-sets forth the requirement for financial institutions to notifying applicants of their credit decision. Fairway notified the Buyers 101 Days after the initial mortgage application that credit was denied. Fairway relied upon Buyers credit report to the determine creditworthiness and subsequently used the same credit report and a third party to deny credit 101 days later, the day after the appraisal occurred valuing the home at {$490000.00} and 72 hours before the scheduled Closing. 

Fairway used Buyers credit report to offer an initial pre-approval in the amount of {$450000.00} and a second pre-approval for {$470000.00}. Upon receiving Fairways preapproval the Buyers issued a Notice to Proceed in the form of a signed Contract to Purchase XXXX XXXX XXXXXXXX XXXX XXXXXXXX, NC in the amount of {$470000.00}. A Loan Estimate was issued by Fairway and received by Buyers indicating Loan Amount, Interest Rate, and expected Closing Cost, Buyers transmitted {$550.00} to Fairway for an Appraisal Fee. Fairway requested and received from Buyers a canceled check for {$4000.00} ( Due Diligence paid to Seller ). A Closing Date of XX/XX/XXXX was agreed upon by all Parties. Buyers did not renew their lease at REMOVED Time Line of Correspondence with Fairway and Buyers Buyers received Pre-Approval, Buyers XXXX report pulled on XX/XX/XXXX ( scores attached ), Notice to Proceed provided to Fairway via a Signed Contract to purchase of residential real estate at XXXX XXXX XXXX XXXX XXXX XXXX NC XXXX for {$470000.00}. Loan amount {$460000.00} Fairway notified Buyers of an appraisal fee of {$550.00} ( paid by Buyers ) and a copy of the canceled check for Due Diligence money paid to the Seller in the amount of {$4000.00} ( Buyers provided canceled check to Fairway ) Closing date set for XX/XX/XXXX, Buyers did not renew lease agreement for REMOVED Buyer was told by Fairway that he needs to complete a 3rd Party Student Loan verification ( Buyer BUYER completed ) Rate Lock was requested by Buyers, Loan Rate Lock received from Fairway on XX/XX/XXXX Fairway informs Buyers BUYER will be added back to the application, ( Buyers were unaware Fairway had removed BUYER from the initial application ) Buyers were told by Fairway that the Mortgage Insurance was too high and were told that Fairway was making adjustments to lower the amount.

o However, according to the rate lock documents the Buyers had agreed to the price of mortgage insurance and did not ask for Fairway to do this.

Buyers contacted Fairway numerous times regarding underwriting and closing status, Buyers called and emailed Fairway numerous times ( see email correspondence file ) Fairway informed Buyers not to panic If there was anything to panic about I would let you know, there is nothing to panic about On XX/XX/XXXX Buyers were told by Fairway that we are having an issue with the low credit scores and Buyers need to pay down two credit cards with XXXX XXXX XXXX XXXX ( Buyers wired {$5000.00} to XXXX XXXX XXXX XXXX to pay off credit cards as requested by Fairway ) Also, Buyers learned from XXXX XXXX that Buyer BUYER was Added Back to the Loan. Buyers were unware that BUYER was removed from the Loan Application. 
Credit ran 2 additional times by Fairway on XX/XX/XXXX, and XX/XX/XXXX Fairway orders a rapid rescore on XX/XX/XXXX, subsequent scores raised to XXXX On XX/XX/XXXX Buyers receive phone call from XXXX XXXX XXXX XXXX if we had a Foreclosure on a previous home, Buyers responded Yes, we had a Short Sale. Buyers sated that the Short Sale was resolved as tax penalties were satisfied and credit report deficiencies resolved. XXXX XXXX XXXX sated that the previous home REMOVED was not recorded with the Register of Deeds as a Short Sale but as a Foreclosure and asked if we had any documentation that it was a Short Sale. Buyers responded that the any documentations related to XXXX was packed away in storage as they had already prepared to move to North Carolina. XXXX XXXX XXXX stated that We ( Fairway ) have to go with whats recorded and the date of XX/XX/XXXX as the Foreclosure date. XXXX XXXX asked Buyers to write a Letter of Explanation stating that the Foreclosure was Due to Job Loss and She would call the Underwriter and talk to them through the Letter A Letter of Explanation detailing job loss was submitted to XXXX XXXX on XX/XX/XXXX On XX/XX/XXXX at XXXX an email is received from Fairway to Buyers stating that their Loan is Processing On XX/XX/XXXX at XXXX Buyers receive another email from Fairway explaining XXXX, We are working to close your loan early etc. 
On XX/XX/XXXX at XXXX pm Buyers receive an email from Fairway stating Quick Tips to make your loan approval even easier, BUYER  and XXXX Buyers receive multiple text messages and phone call request from Seller, stating that the closing date has been moved to XX/XX/XXXX. 
Closing date changed from XX/XX/XXXX to XX/XX/XXXX Appraisal Completion Date XX/XX/XXXX for Loan Number # # # # # # # by XXXX XXXX for XXXX XXXX XXXX XXXX XXXX Fairway sends Notification of Credit Denial received on XX/XX/XXXX for credit dated XX/XX/XXXX

Company response to consumer: Closed with explanation