Consumer complaint received 2023-01-21
Company: LOAN SIMPLE INC.
State: AZ
Product: Mortgage
Sub-product: FHA mortgage
Issue: Closing on a mortgage

Complaint:
I recently attempted to purchase a home using Loan Simple as the lender. I was approved for a {$14000.00} down payment assistance with a XXXX XXXX interest with the terms that it would be forgiven as long as I lived in the home for XXXX  years. This was in addition to the mortgage loan for {$270000.00} with an interest rate of XXXX XXXX. I was advised by the loan officer that due to using the down payment assistance program my interest rate would be approximately XXXX XXXX higher as compared to the currentmarket rates at that time. My loan officer at the time was XXXX XXXX. At some point during the escrow process, XXXX XXXX contacted me and advised me that he was now my loan officer instead of XXXX XXXX. On XX/XX/XXXX, I went to the title company to sign closing documents as my escrow was to close the next day. I was then presentedwith documents to sign regarding a second lien on the home in the amount of {$14000.00} with a XXXX XXXX interest rate with a monthly payment of {$170.00} on top of the {$2200.00} I was already expected to pay for the mortgage. I immediately reached out to XXXX XXXX as this was something I had not been previously advised of and assumed it was an error. However, XXXX advised me that it was not an error and that there was nothing further he could do for me. I requested to speak to his boss and was directed to XXXX XXXX XXXX. XXXX XXXX advised me that I could either stick with the changed loan program and he would offer free refinancing at a later date or I could go with the original loan program, but at an XXXX XXXX interest rate instead of the XXXX XXXX interest rate. However, they would not offer the originalloan program. Due to the suboptimal loan conditions, as compared to what had been previously discussed and agreed to, I did not sign. I was devastated to say the least. 
I had put {$2500.00} earnest money down, paid {$750.00} for the appraisal, and an additional {$250.00} for an appraisal reinspection fee. 
The XXXX 's real estate agent issued a cure notice that I was unable to perform as the loan I had applied for had changed somehow in the process. During the escrow period, no one at Loan Simple bothered to contact me to explain what had happened, and why the program I was approved for had changed. The first time I had heard about a change in the loan program was at the signing table. When attempting to find any information aboutthis change in the loan program on the day of signing, I did find a closing disclosure in another part of my online Loan Simple portal. However, this closing disclosure was not signed or agreed to. To note this part of the portal, XXXX XXXX had previously advised me to not " worry about ''. I have attached a screenshot of the unsigned closing disclosure that states " Signature Required ''. It will not let me print out this disclosure without it being signed. If I had been notified of this during escrow, I would have further clarified with the loan officer and been able to make an informed decision. The title company ruled in favor of the seller and I lost my earnest money and the inspection fees previously mentioned. Had I known this information prior to the start of escrow, I would not have made an offer or got under contract with this home. However, instead, I was forced to either forfeit my earnest money or enter into a loan with suboptimal conditions. 
On XX/XX/XXXX, my realtor, XXXX XXXX XXXX, and I sent a letter with all of our attached documentation to Loan Simple requesting that they bring attention to the issue and financially compensate me for damages lost in the transaction totalling {$3500.00}. However, as of the day I am submitting this request, XX/XX/XXXX, no response has been received from Loan Simple. 
I have attached the letter sent to Loan Simple, the signed contract, the preapproval certificate, the loan estimate for the down payment assistance, my signed closing disclosure ( which does indicate the amounts I paid for the inspection and reinspection ), the unsigned closing disclosure that I did not find until after the day of signing, the cure notice, and a notice of cancellation indicating that the earnest money was returned to the seller.

Company response to consumer: Closed with explanation