Consumer complaint received 2018-01-24
Company: GATEWAY FIRST BANK
State: TX
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
Gateway Mortgage Group , LLC misled me about qualifying for a home loan. 

In XX/XX/2017, I was pre-approved for a {$140000.00} VA home loan with XXXX XXXX XXXX XXXX in XXXX XXXX, TX. I am unemployed and my only income is my XXXX XXXX  pension ( {$1700.00} gross monthly income ). I have no debt except my credit cards which I pay in full each month. 

On XX/XX/2017, I signed an agreement to purchase a home for {$210000.00} and provided a copy of the contract to XXXX XXXX XXXX XXXX. I liquidated most of my retirement investments ( {$80000.00} ) for a down payment to purchase the home. 

On XX/XX/2017, XXXX XXXX ( XXXX XXXX XXXX XXXX Loan Officer ) informed me that the loan was being passed on to one of their " sister '' companies " Gateway Mortgage Group '' in XXXX XXXX TX, because they could not process my VA loan. 

On XX/XX/2017, XXXX XXXX ( Gateway Mortgage Group Loan Officer ) instructed me to fill out a new loan application on-line. Immediately, Gateway Mortgage Group pre-approved my home loan for {$140000.00}. 

On XX/XX/2017, I received a copy of the loan application for my signature. I noticed some discrepancies on the application such as my loan was now a conventional loan instead a VA loan ; my gross monthly income was higher than the amount on my monthly income statement ; and the total amount of my assets was more than double the amount I reported. 

Before I signed the application, I contacted XXXX XXXX about the discrepancies. XXXX XXXX told me it was common practice to increase the monthly salary amount ; the type of loan did n't matter because of the size of my down payment ; and the total amount of my assets would be corrected. XXXX XXXX told me to sign the application and she would correct the total amount of my assets in the system. 

On XX/XX/2017 -- 3 days before the scheduled closing date -- XXXX XXXX informed me that she failed to verify the property taxes on the home I was purchasing. As a result, I no longer qualified for the conventional loan unless I increased my down payment. I informed the XXXX XXXX that I could not increase my down payment. XXXX XXXX stated I qualified for a VA loan ; however, the process would take another 30 days and I would have to pay for another home appraisal. 

On XX/XX/2017, I filed a complaint with Gateway Mortgage Group Corporate Office in Oklahoma and requested reimbursement for the money I spent due to XXXX XXXX 's negligence. Gateway Mortgage Group refunded me the home appraisal fee, but did not reimburse me for the other expenses -- claiming the expenses are " out of Gateway 's control. '' Despite their claim, it does n't change the fact that Gateway Mortgage Group misled me about qualifying for a loan and should be held liable for their actions. Further, Gateway Mortgage Group can not claim they hold " a high standard for Customer Experience ... '' when I was duped by their loan officer. My first-time home buying experience was horrible.

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 monetary relief