Consumer complaint received 2020-12-01
Company: Residential Mortgage Services Holdings, Inc.
State: MA
Product: Mortgage
Sub-product: FHA mortgage
Issue: Trouble during payment process

Complaint:
On XX/XX/XXXX we purchased a home in XXXX. We sold two homes around the same time. One sold in NH  on XX/XX/XXXX and one sold on XX/XX/XXXX. I could have paid for our new home in cash but I didn't want to be cash poor so I wanted to put over 50 percent down on our new home. Purchase price was XXXX. I wanted to put down. XXXX. The mortgage broker would not let me do a conventional loan even though I had had one for about 20 years ( one with my first husband since XXXX and one on my own since XXXX ). I have a high credit score and I was putting down XXXX cash. The mortgage broker told me because I was divorced and my ex husband had lost his job during cover and we changed child support and didn't have supporting documents he could not give me a conventional loan but and FHA with PMI. RMS in XXXX Ma made me get my divorce lawyer involved and had my ex husband go and get a piece of paper notarized stating we changed child support to XXXX a month versus XXXX as he had lost his job during covid. RMS Residential Mortgage Services out of XXXX also had me call my XXXX XXXX XXXX and go back 3 years to get past child support and spousal support payments. This took me about 6 hours on the phone to do. I did all of the above and it was still not enough for RMS. So they put me on an FHA loan with PMI even though my credit score was high and I had 50 percent down. I had also remarried in XX/XX/XXXX but they refused to put my new husband on the loan because he only had an IT number and not a SS number. So his income was not included on anything.He has paid taxes in the US for over 16 years. This was THE most stressful mortgage process I have ever been through. I will never understand why I am getting penalized for putting down 50 percent and having good credit. They also kept making me jump through hoops to await the close of my NH property. Make me change the closing date up there to match the one in Ma and then not letting me close on XX/XX/XXXX for the mass home. My husband lost 4 days of work and I had to pay XXXX extra to the moving company ( for storage ) because RMS could not give me a closing date ( they kept changing it ) after jumping through every hoop they asked me to jump through including : getting the NH property to close on XX/XX/XXXX, getting a divorce attorney involved, having my ex husband sign notarized paperwork stating he lost his job and we voluntarily changed child support, get 3 years of documentation from XXXX to show what child support and spousal support had been in the past. So we lost XXXX dollars to moving company and another XXXX for my husbands unpaid work as he took time off for us to move and then the closing date changed. I was also told that I should take a loan out against my 401k in order to get our new home even though I was selling two homes at the same time and putting down over 50 percent on new home. It was just absolutely absurd and ridiculous. The sellers realtor for the home we purchased even said this is not right and I should make a complaint as I had so much money to put down and a good credit score. She had never seen anything like this happen before. I am really annoyed I am paying PMI. I had no choice as the people buying my home were threatening to sue if the closing did not go through. I was forced into the FHA loan and the PMI.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation