Consumer complaint received 2017-07-11
Company: Mortgage Research Center, LLC
State: PA
Product: Mortgage
Sub-product: VA mortgage
Issue: Closing on a mortgage

Complaint:
On XXXX/XXXX/XXXX, I received a VA mortgage pre-qualification approval letter in the amount of {$60000.00} from Veterans United Home Loans. My loan officer was XXXX XXXX, NMLS # XXXX, located at the XXXX, MO location. I was assigned to XXXX in XXXX XXXX, after my original loan officer, XXXX XXXX, left the company. At the time, I was trying to close on a home for {$100000.00}, but hit some personal roadblocks and my financial situation took a negative turn. XXXX turned my account over to the XXXX XXXX XXXX XXXX to help get my credit score back on track. I worked with XXXX XXXX, and signed a Soft Credit Inquiry on XXXX/XXXX/XXXX. She gave me specific directions that if I paid off certain amounts on my credit cards, I would get my score up to XXXX and I would have a better chance of getting my home loan back on track. I took out a loan from my 401K and was able to pay off enough of my debt to raise my score to XXXX. XXXX XXXX informed XXXX XXXX of my new financial status. My file was then sent back to XXXX who said in an email " I can definitely work with this! ". She sent me an ema Ultimately, I decided NOT to close on the house and I pulled out of the contract. By this point, I realized my real estate agent and the sellers had not fully disclosed certain information about the home and a previous FSBO listing at a lower amount. So I chose to walk away from the contract and forfeited my {$1000.00} earnest money. I informed XXXX XXXX of my decision. On XXXX/XXXX/XXXX I received an email from XXXX saying the following, " Hi XXXX. I completely understand and kind of felt that way too, like you were being pushed into it, but I try to stay out of that part of the process. I agree, finding a less expensive home is probably the way to go. Based on your current debt to income ratio, you could not qualify for this home anyway so I am happy you made this decision before I had to give you the bad news ''. For me, this set up immediate red flags. When was she going to tell me the loan would never go through? She gave me a detailed monthly payment quote on a {$100000.00} loan just weeks earlier, AFTER I had already worked with XXXX XXXX. Why was n't I told then I would only qualify for {$60000.00}? Was she going to wait till I was getting ready to close only to tell me it was n't going to happen? I took out a loan from my retirement account, paid down my debt, under the impression it was to improve my score AND close on a house for {$100000.00}. But, I knew my financial situation was n't very strong and I just left it at that, deciding to pursue a cheaper home for {$60000.00}. <P/>For months, I continued to pay my bills on time, pay down my debt, and improve my credit score. On XXXX/XXXX/XXXX, after a day of looking at houses with my real estate agent, I found a home I was interested in, but the listing price was {$85000.00}. I told my agent " let me call my loan officer first ''. I thought maybe I could qualify for the larger loan amount, but wanted to make sure before I placed an offer on the home. I called XXXX XXXX that day. I told her I found a great home, but it was listed for {$85000.00}. I specifically asked, " if I paid off my XXXX XXXX credit card, could I qualify for a higher amount? ". The reason I asked this question? I had {$3000.00} in my checking/savings account at the time, but did n't want to spend all my money to pay off a credit card. I was already qualified for {$60000.00} and hoped to find a home for that price. Also, I was ( and still am ) paying for XXXX XXXX for my dog. BUT I would spend the money IF it meant increasing my score enough to qualify for the RIGHT home. So that 's why I discussed this option with XXXX during our phone conversation. She " worked the numbers '' while still on the phone with me, and said " Yes! I can totally work with that if you pay off your XXXX XXXX credit card ''. I was very excited and told her I 'd pay off my credit card as soon as possible, and I would go through with submitting an offer on the home I liked. She issued me a pre-approval letter for {$85000.00} that day, which I submitted with my offer on the home. The home was listed for {$85000.00} and I made an offer for {$85000.00}, and asked for 6 % Seller Assist to help with closing costs. My offer was accepted a few days later, but with 4 % Seller Assist. <P/>On XXXX/XXXX/XXXX I paid for a home inspection in the amount of {$360.00}, which was then completed on XXXX/XXXX/XXXX. Also, on XXXX XXXX, I was included in an email conversation between XXXX and my real estate agent. My file was submitted to processing and " everything looks great so far ''. I was told about appraisal costs and to sign e-disclosures. I was told to work on getting a homeowner 's insurance quote and to send a copy of the cleared earnest money check, which I did have in the amount of {$500.00}. On XXXX/XXXX/XXXX, XXXX asked if I could provide updated paystubs because there was " a problem with my income information ''. I immediately expressed my concern, and my horror, of there being a problem with losing my loan. I 've been through this too many times and know things can change, for the worse, in a split second. She assured me to " hang in there '' and she would " figure out how to make this work ''. Again, I mentioned I was starting to panic and let me know if there would be a problem. I never heard another word regarding any issues with my loan. <P/>In the meantime, I received a copy of the home inspection report. There were numerous electrical, plumbing, and structural repairs that would need fixed, especially to pass a VA inspection. I became worried the sellers would not help with repairs, and I was n't prepared to move forward with closing at the time. I told my real estate agent to cite issues with the inspection report to hold off on the closing until an agreement could be made. She told me the VA appraiser was scheduled to arrive the next day, XXXX XXXX, and to inform my mortgage lender of the situation, which I did. On XXXX XXXX, I received an email from XXXX saying " that is unfortunate because it was a super cute house but maybe for the best ... good news is that I was able to nail down your income so we wo n't have a problem with it on the next home. I will withdraw your file and set up a new one for you with a new pre-approval letter ''. With that, I continued to look for homes in the {$85000.00} range, yet continued working with my real estate agent and the original homeowners to possibly reach an agreement to continue with closing. <P/>On XXXX/XXXX/XXXX, I WAS able to reach an agreement with the homeowners and decided I was " all in '' for closing on the home. I was ecstatic, to say the least! I 've been living in a hotel room for months while my dogs are staying with my ex-husband. I could finally see a light at the end of my long, dark tunnel I 've been living in this past year. I was finally moving forward to buy a home I loved and to be reunited with my dogs. Because it was going into the weekend, I left a message on XXXX 's work phone, and sent her an email asking her to please re-order the appraisal, and that I was ready to move forward with closing. I told her I would work on a homeowner 's insurance policy and to send a copy of the cleared earnest money check. <P/>On XXXX/XXXX/XXXX, XXXX responded via email, " there is still and issue with your income. For some reason, [ my ] income was incorrect on the initial file with the first home ... Sorry for the bad news ... I am so sorry for the error. Please let me know how to proceed : o ) ''. My whole world just came crashing down, and it was like " oops, my bad '' and then to sign off with a stupid smiley face? That just added insult to injury in my world. I could n't believe this was happening again, and with the same loan officer. I brought up her previous email saying she " was able to nail down my income for the next house '', and I said " I wished she had never approved me for the higher loan amount. This is not my fault, yet I am the one suffering from mistakes made on your end ''. I told her " I do not feel like you are looking out for my best interests at all '' and I requested a refund of the {$360.00} I spent on the home inspection. I also told her to " please stop sending me smiley faces. I am completely devastated right now ''. She responded " a home inspection is not required by us or the VA so therefore is an expense you chose ''. Then she proceeded to tell me she could n't even qualify me for the original {$60000.00} I was approved for months ago! And offered " if you are unhappy and want to try a different lender '', she " would transfer my paperwork ''. I replied, " I would have never gone through with the home inspection if you had n't told me I was approved for the loan amount. It was n't " my choice '' to just randomly pay for a home inspection. So now you 're telling me I 'm not even approved the original {$60000.00} either? You are killing me ''. I then asked for her supervisor 's name and phone number, which she did provide. I also asked " why are my credit scores an issue again? I worked directly with your XXXX XXXX program and spent thousands of dollars to pay down my debt and boost my credit score '' ; " I have done everything you have asked of me to move forward with buying a home ''. If anything, my scores have gone up and my debt has gone down, which is all positive. But not according to my loan officer. <P/>On XXXX/XXXX/XXXX, I called XXXX XXXX, a member of the consumer advocacy program with Veterans United. Through tears and emotional frustration, I told him everything I am writing to you about here today. He said he would investigate further and get back to me right away. A few hours later he did call me back, and agreed that " I would be refunded the {$360.00} home inspection fees '' because " obviously mistakes have been made on their end ''. And that he was glad I called because they can " improve for the future ''. Well, that still does nothing for the fact I have no loan of any amount. He offered to set me up with another ( this makes it the third ) loan officer to offer a " new set of eyes '' to see what they can come up with. Unfortunately this happened over the XXXX XXXX holiday and I had to wait a couple of days to speak with someone. I was in pure agony for days. I was depressed. I was scared I would never see my dogs again. And I would have to continue paying rent in a hotel. I felt as if someone had stabbed my heart. For a company with the word " Veterans '' in their title, I would think they would treat me better as a true veteran. <P/>Well my conversation with the next loan officer made the situation 100 times worse. He was rude and condescending right off the bat. He did n't try to get to know me at all. He did n't make me feel he would work on my behalf to help me. He said things like, " you should just find a place to rent with your dogs until this gets figured out '', " what we say over the phone is temporary and they ca n't be held accountable if things change '', and " just keep doing what your doing ''. I was literally begging him to consider a loan at an even lower amount asking " can you approve me for a {$50000.00} loan? A {$40000.00} loan? Anything at all?! '' I was so upset and angry. Then he asked " why do n't you have any money in your [ checking and savings ] accounts? '' I screamed, " two weeks ago I did have {$3000.00} in my accounts and now I have nothing because my other loan officer told me I 'd qualify for a higher loan amount if I paid off more of my debt! ". I asked " is this how you treat veterans, and even veterans with XXXX ( which I am diagnosed as having )? He responded, " No, no, no. You ca n't use that as an excuse. I 'm a vet too with XXXX ''. An excuse? Are you kidding me right now? I said " this conversation is over '' and I hung up the phone. <P/>I called XXXX XXXX again a few days later, and told him of the conversation I had with the loan officer, XXXX XXXX. I told him I do n't feel like a valued member of his company at all and I 've been met with lies, mistakes, and now, hostility. I continued that when I was working with XXXX XXXX ( my very first loan officer ) he was amazing. He was kind. He treated me like a human being. Like a friend. And was genuinely helpful in the home loan process. Since he left, it was a downhill battle and I 've been left with nothing. XXXX apologized about my experience and said my feedback " would help them improve in the future ''. And that was that. As of XXXX/XXXX/XXXX, I did receive a check in the amount of {$360.00} as a refund for my home inspection fees.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation