Consumer complaint received 2023-06-03
Company: FIRST CONTINENTAL MORTGAGE LTD
State: TX
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
I received notification on XX/XX/XXXX from an XXXX XXXX stating I represent Advisa Mortgage Services , Ltd. regarding the Loan issued to you for the Property. Advisa recently learned that prior to closing and despite affirmatively acknowledging the information provided in the loan application as true, accurate, and complete, you failed to disclose a pre-existing debt with XXXX XXXX XXXX XXXX. Specifically, XXXX XXXX XXXX is listed as one of the Borrowers on the XXXX  Deed of Trust recorded on XX/XX/XXXX under Document No. XXXX in the XXXX XXXX, Texas Real Property Records. A courtesy copy is attached here as Exhibit A. 
As a result of this misrepresentation, Fannie Mae has demanded that the loan servicer repurchase the Loan, who in turn has demanded that Advisa repurchase the Loan from the servicer. Advisa must repurchase the Loan by XX/XX/XXXX unless documentation satisfactory to rectify the issue is provided to XXXX XXXX no later than XX/XX/XXXX. 
By this letter, Advisa demands that you send a written explanation and all necessary documentation for use in responding to the allegations of an undisclosed loan and your purported misrepresentation to me via email to XXXX no later than Friday, XX/XX/XXXX at XXXX XXXX  XXXX. Anything you provide to me will be submitted to XXXX XXXX XXXX XXXX not Advisa or the Loan servicer determines in its sole discretion what constitutes satisfactory documentation. 
If Advisa is required to repurchase the Loan, Advisa intends to pursue all available remedies for default provided by law, in equity, or under the Note,1 Deed of Trust,2 and/or any other loan documents. 


I requested XXXX send me the demand from Fannie Mae however I did not receive anything. 

My concern is When I initially applied for the mortgage on XXXXXXXX XXXX XXXXXXXX XXXX I had 1 mortgage which was XXXX XXXX XXXX XXXX which was currently on the market for sale. 

XXXX XXXX XXXX ( XXXX XXXX  ) debt was not listed on my application as at that time I had no intention of another mortgage loan. In XXXX I advised Advisa Mortgage of the intentions on co-signing the loan for my sons home. I assume before closing on my property at XXXX XXXX XXXX XXXX a new credit report was pulled which wouldve provided the same information about XXXX XXXX. 

I was verbally asked about the credit pull and I advised Advisa I was co-signing on my sons home. I was also asked about a check that cleared my account and I advised Advisa mortgage that it was a down payment for my sons home.

To my knowledge I provided all correct information to Advisa. Also based on my calculations with the added debt I still qualify with no issues.

Im a little concerned that I brought up this mortgage almost a year ago and its just now being questioned. Please advise if I need to seek legal counsel as I was more that forthcoming with Advisa Mortgage about the XXXX co-signing, deposit etc. I assumed they had done their duty and pulled new credit and updated the loan documents accordingly Now Im receiving and email and given less than 48 hours to reply with no documentation backing up their claim. Also its not my fault the mortgage company didnt do what they were supposed to and disclose the information to the underwriter after I told them what was going on. I did nothing wrong the mortgage company is at fault for not disclosing the information and now they want to come after me

Company response to consumer: Closed with explanation