Consumer complaint received 2021-07-29
Company: MLD MORTGAGE INC
State: CA
Product: Mortgage
Sub-product: FHA mortgage
Issue: Closing on a mortgage

Complaint:
Hello, We closed on a house in XXXX, CA on XX/XX/. XX/XX/XXXX our lender XXXX XXXX from XXXX XXXX XXXX called and said we forgot to sign a couple of documents and she sent them over for us to sign. When we opened said documents, it was an entire new loan package with a new payment over {$400.00} more a month. There was so explanation as to why we had a higher payment and no documentation justifying said higher payment. The forms were also backdated to the day our notary came to our home XXXX XXXX  for our original loan forms. This, the lack of transparency as to what the forms were and previous issues we had with XXXX, led us to tell her we would not sign the forms until we had a real estate attorney review the situation.XXXX informed us they put the incorrect tax information on our loan papers, that is why the payment is increasing. No documentation was provided to support this. 

We have a FHA loan with a XXXX construction loan. Our home needs multiple repairs that wouldn't qualify it for a typical FHA loan. We took out {$29000.00} in construction funds. We've had our first contractor complete work on our home with a sewer line replacement. The total came to {$8600.00}. We submitted a request to the 3rd party lender handling the XXXX funds, XXXX XXXX, for the funds to pay our plumber. From them, we found out that 50 % of our XXXX funds were released to us at the time of closing on XX/XX/XXXX, in the amount of {$14000.00}. It was released to XXXX XXXX XXXX and she provided us a screenshot from our closing statement showing the release of funds into mine and my husbands name. XXXX XXXX XXXX refuses to hand this money over to us until we sign the new loan documents. They refuse to explain why the funds were not released to us at the time of closing or why they never disclosed said funds would be released to us. We had no idea we would have access to 50 % of those funds for our contractors right away. 

After speaking with our lawyer, he told us that before moving forward with signing, we need to request a breakdown of our new tax payment from the county proving that this is the accurate property tax amount, a new closing statement because the one provided by XXXX XXXX XXXX and the one XXXX XXXX ( The 3rd party company handling the XXXX funds ) has does not match, we asked them to clear up those financial discrepancies, and proof of where those XXXX funds went that were supposed to be released to my husband and I. I told them after we received those documents and they agreed to release the XXXX funds to us, we would sign the new loan forms. 

Now we are getting no response from them. Whereas before, when we were threatening legal action, we would receive a response with an hour or two about how they need to sell our loan so we need to move forward and get these loan docs signed. Now that we've requested documentation proving our new payment, they will not answer an emails. We are only communicating via email so we can have documentation. I sent the request for these forms Friday XX/XX/ and have yet to receive a response. I emailed again Tuesday XXXX XXXX  and Wednesday XXXX XXXX  and am still being ignored. 

We had to pay {$500.00} out of pocket for the lawyer to review our situation. We just had to pay {$3800.00} to our plumber as a partial payment to his bill because he is calling us constantly asking for payment. His work was completed over 3 weeks ago. If we don't receive our funds from XXXX XXXX XXXX, we have to pay our full bill for him by next Friday XXXX XXXX That's another {$4800.00} out of our pocket we don't have. 

We also signed a form from them in our closing documents that's an omissions to errors compliance form where we agree to comply with any clerical errors they make on closing documents within 30 days or we become financially liable. That 30 days is pretty much up and it feels like they aren't responding so that we face more financial penalties. 

We just want our construction funds so that we can continue the work on our home. We are required to complete all agreed upon work within 6 months and we cant move forward with any of it until they release funds to us. It's insane and feels criminal. We would greatly appreciate your help.

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