Consumer complaint received 2020-12-07
Company: LD Holdings Group, LLC
State: TX
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
Loan Depot 's initial solicitation, which came in the mail, stated Call us today for a no obligation rate comparison analysis. 

Since I had been shopping for refinance bids on my primary residence, I called LoanDepot on, XX/XX/2020, to get my third and final bid. I was told that I would need no other bids and that LoanDepot would be my " best offer '' ... all that was required was {$490.00} for an Appraisal Deposit. With the belief that it was a no obligation, rate comparison analysis, I, therefore, acquiesced. 

On XXXX XXXX, 2020, LoanDepot submitted its Final Loan Estimate to me. As I had received the other two lenders ' Final Loan Estimates before this date, ( neither of whom had required an appraisal ), it became clear that, LoanDepot was not my best offer. Once this transaction fell through, I tried to get the deposit back, but to no avail. 

What LoanDepot practices is barely legal and definitely unethical. It coerces its consumer into having an appraisal done. Without an appraisal, LoanDepot does not proceed with the loan, and cancels the consumer 's application. If the appraisal is completed, and LoanDepot does not keep its promise of providing the guaranteed, no obligation, best offer '', the consumer 's money is gone and never to be returned. LoanDepot gets away with this practice from a loophole it takes advantage of, in a Consumer Finance lending regulation : Citation ( s ) :1026.19 ( e ) ( 2 ) ( i ) and Commentary 19 ( e ) ( 2 ) ( i ) ( A ) -1 through -5 " Except for obtaining a credit report, neither a creditor nor any other person may impose a fee on a consumer in connection with the consumer 's application for a mortgage transaction before the consumer has received the loan estimate and indicated to the creditor their intent to proceed with the transaction described by those disclosures. '' LoanDepot slips an " Intent to Proceed '' clause in on the Appraisal Deposit Agreement, so the consumer is unaware that he has signed such a clause. Other lenders have a separate and specific " Intent to Proceed '' form which is submitted much further down the loan-processing road. At no point before I signed the Appraisal Deposit Agreement, was I made aware, either through email, phone or letter, that the Intent to Proceed clause was present. In fact, Loan Depot had me sign this agreement on the initial, XX/XX/XXXX phone call, after I had made it clear to the loan officer that I was getting other bids. Even if a consumer were aware of the clause and declined to sign the agreement, LoanDepot would cancel the consumer 's application and the consumer would forfeit his guaranteed, no obligation, best offer ''. 

If LoanDepot finds it necessary to have an appraisal done, it should be prepared to pay for that appraisal if the transaction falls through. I paid LoanDepot {$490.00} in good faith, but my deposit has not been returned. 

I found a much better offer with one of the two other lenders I contacted, but LoanDepot blamed me for its failure to provide the no obligation, best offer. On XXXX XXXX, 2020, customer care said I had locked the rate in too early. I had not locked it. To this day, I do not know when the rate was locked. 

I have contacted other entities, XXXX XXXX  XXXX, the Texas State Attorney General and the Texas Department of Savings and Mortgage Lending, regarding LoanDepot 's unethical practices, but since LoanDepot uses the aforementioned loophole, it stays one step ahead of the law. 

I see there are 663 XXXX XXXX XXXX  complaints against LoanDepot in the last 3 years. As the complaints accumulate, hopefully Loan Depot 's coercive tactics will appear on a legal entity 's radar. 

Compared to other lenders who operate with integrity, LoanDepot operates with bait-and-switch tactics. 

LoanDepot is a predatory lender. The proof is in its lack of interest in serving and taking care of its consumer. 

I am writing this complaint because I was a victim of LoanDepot 's unethical conduct. I hope this saves others from being victims of its scam, as well. 


TIMELINE is attached below.

Company response to consumer: Closed with explanation