Consumer complaint received 2018-10-21
Company: Neighborhood Assistance Corporation of America ("NACA")
State: CA
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Closing on a mortgage

Complaint:
Participated in the NACA program for a mortgage Summer of XX/XX/XXXX. We wanted to purchase a condo in an up and coming area ( XXXX, CA ) because my wife and at that time were 5 months pregnant and were looking for additional space to prepare for the arrival of our XXXX child. This specific property was classified as an " Own Your Own '' property and not a " Condo '' because the specific property did not have its duly executed condo conversion certification filed with the county. Myself, my wife, and my Agent understood the classification of the property and therefore ultimately understood the risk of traditional lender financing of the property type. As a prudent due diligence question before signing a Purchase Agreement, my Agent asked my assigned NACA Closing Coordinator if this is a property the lender & NACA are comfortable financing. 

XX/XX/18 - My Agent XXXX XXXX, who is a NACA employee, first asked, via text, my assigned NACA Closing Coordinator, XXXX XXXX, the following ( Please note that I have the text message saved on my phone of the text conversation described below ) : XXXX XXXX : " XXXX have you head of own your own condos. Will they qualify for NACA financing? Agent said they are separated condos but they did not get their condo certification certificate. Says condo on tax sheet Universal land use. Please let me know. Thx. '' XXXX XXXX : " Yes you can go NACA. '' XXXX XXXX : " Ok thanks. '' XX/XX/18 - Final Purchase and Sale Agreement Duly Executed ( w/ counter offer signed ) XX/XX/18 - {$220.00} Pest Inspection Check Clears ( see cancelled check attached ) XX/XX/18 - {$3000.00} Sent to Escrow Account for Earnest Money Deposit ( + {$35.00} wire fee ) ( see EMD Receipt attached ) Throughout this entire time my 6 month pregnant wife and I began going through the closing process ( i.e. opening escrow & providing any additional information requested at the time ). In addition to having to constantly leave work to be at the new property for inspections and paying for additional costs and services that were asked of us in a timely manner per the Purchase Agreement. We continued with Earnest Money Deposit ( ~ {$3000.00} + {$35.00} wiring fee ) and Property & Pest Inspections ( ~ {$500.00} ) which cost my wife and I up at the very least {$3500.00} total not including transportation to and from to the property several times during work hours. 

XX/XX/18 : Removed final contingency - which was the Loan Contingency As we continued to go through the closing process, we removed the final contingency, which was the loan contingency per the Purchase Agreement. Our ultimate decision as to why we removed the loan contingency was primarily based on the reassurance received, via text, from my assigned NACA Closing Coordinator XXXX XXXX up above. The understanding, and what is specifically stated in NACA 's Workbook - " NACA 's process is designed to close loans within 28 days from receipt of the executed Purchase & Sale Agreement. The NACA Underwriter will address any lender conditions with your Closing Coordinator being your point of contact in processing and closing your loan. Virtually all NACA mortgage applications are approved. '' This is why we removed the Loan Contingency, we were misled, misguided, and ultimately provided false information & reassurances that were simply not true. Had XXXX XXXX taken the time out to ask his supervisor if NACA +  Lender finances " Own Your Own '' property types, it is clear based on the timeline above that my wife and I would have never signed the Purchase Agreement in the first place. 

XX/XX/18 : XXXX XXXX notifies my wife and our loan has been denied via e-mail XX/XX/18 : XXXX sent us a letter to formally let us know our mortgage application had been denied. As stated on the denial letter, Reasons for Denial of Credit, " Unacceptable Property ''

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