Consumer complaint received 2021-02-01
Company: NATIONS DIRECT MORTGAGE, LLC
State: FL
Product: Mortgage
Sub-product: FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
We have experienced an extremely frustrating and stressful process while attempting to obtain a loan for the purchase of a new home with Nations Direct Mortgage , LLC. This lender is based in California doing business in the state of Florida ( XXXX ) .We entered into a contract to purchase a home, in a new development in XXXX XXXX Florida XXXX on XX/XX/XXXX and provided ( {$2500.00} ) in earnest ( EMD ) funds after receiving initial loan qualifying approval from Nations Direct. The loan application then went through the underwriting process and resulted in several conditional requirements. These conditions were addressed, and we received notification of final loan approval on XX/XX/XXXX. The conditions of the loan were never entirely relayed to us although multiple requests were made to obtain a list of said conditions so that we could address them in a timely manner. This resulted in over a three-month delay of the final loan approval from the time of the initial loan approval and property contract agreement until the loan final approval on XX/XX/XXXX. We thought about moving to a different lender but were informed by the company that no other lender would fund our mortgage, so we should just do what was asked believing that would be our only option. 
One of the conditions for loan approval was that the credit scores must be at or above 640. However, the lender made several hard credit inquires on XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX, resulting in the credit score dropping below the lender requirements, jeopardizing the loan funding. Although this was a direct result of the lenders actions, we were advised that if we did not raise the credit scores, we would not be able to close. As a result, we had to take additional actions and employ a third party at additional expense and pay down revolving credit to bring the credit scores back to the required target ( {$2200.00} ). We were successful in raising the credit score above the threshold again. We were promised that we would be cleared to close once the credit score item was resolved. 
The first closing date was set for XXXXWe took time off work to close at the prescheduled time. We arrived at the closing location a little before the scheduled time. We received a call approximately 5 minutes after the closing was to begin that stating that we would not be closing. We inquired as to the reason, but no reason was ever provided. 
Because the loan was approved, and we were scheduled to close on XX/XX/XXXX, we moved forward with the appraisal and inspection of the property, incurring those out-of-pocket expenses ( {$600.00} ). 
At the onset of our mortgage application, we applied for and received a grant award for down payment assistance through the state of Florida. The lender received our award letter on XX/XX/XXXX. The letter was sent to the lender via the loan processor on XX/XX/XXXX. The lender had approved our loan on XX/XX/XXXX with these funds applied and included in the truth in lending statement. During the XXXX timeframe, the lender relayed that the down payment grant funds may not be able to be used and this would need approval from senior management, which, again, delayed closing. 
The initial purchase contract was valid through XX/XX/XXXX. We were assured the clear to close was forthcoming and because the closing had been postponed multiple times, we had to initiate several contract extensions ( XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX ). The lender never provided communication as to the closing status, reason for delays, or requests for additional information/documentation that was needed to close the loan. We have also made several attempts on our own to contact the lender for answers. 
As of XX/XX/XXXX, no additional closing date was set, nor any additional information provided as to the status of the loan. Because of the lack of communication from the lender and the elapsed time from the initial contract and subsequent extensions, the seller refused to accept any additional extensions and said they would never do business with us again. The earnest money was forfeited due to the contract expiration and we lost the ability to purchase the home we had chosen and spend over six months working towards. 
Every time we asked questions about the loan or asked about the status, we were ignored or received responses such as we know what we are doing and dont ask questions. Questions regarding the loan status or process were never answered or relayed accurately. The scheduled closing did not occur, and no courtesy call was made to inform us we would not be closing. We were told that no other lender would fund the loan. The lender decided, after approving the loan through underwriting, that the down payment assistance grant funds may not be allowed. I believe the fact that we are non-married joint applicants played a factor in the issue. The lender continuously changed/impose different terms or conditions on the loan after the initial offer and throughout the process. When all the factors are taken into consideration, it appears that we are victims of discriminatory and predatory lending practices. We believe the lending company violated the Equal Credit Opportunity Act ( ECOA ) and the Fair Housing Act ( FHA ) Federal laws. We also believe the interest rate was inflated along with other fees that are not in line with reputable lenders risk-based pricing structures. 
As of today, XX/XX/XXXX, we have not received an approval, nor denial of the loan, and no representative from the lender will discuss and/or disclose information as to the status of the loan.

Company response to consumer: Closed with explanation