Consumer complaint received 2019-03-02
Company: GATEWAY FIRST BANK
State: KS
Product: Mortgage
Sub-product: FHA mortgage
Issue: Closing on a mortgage

Complaint:
I recently had an opportunity to due business with Gateway at a location in XXXX Kansas. Unfortunately this did not end well and legal action might need to be pursued. I have filed a complaint with the Kansas Officer of the State Banking Commissioner and with the Kansas Attorney General. I have tried many times to get in contact with this location ( XXXX XXXX ) as well as his regional manager XXXX XXXX to no avail. I have left messages and sent emails and no one has responded. I am submitting this complaint with the expectation this can be worked out and we can reach an agreement to suit both sides. If not I will have no choice but to seek legal council and pursue this matter through the legal system. The more the public finds out the more other applicants may question the outcome of their loan decisions. 

I submitted an application with Gateway on XX/XX/XXXX. I was assigned to XXXX XXXX ( Branch Manager ). He asked for paystubs, tax returns, w2 's and such to prequalify us for a home we had a contract on. I uploaded all this information into their system on XX/XX/XXXX. We were notified we were prequalified. On XX/XX/XXXX we had a contract on a HUD REO home. They said they began working on the loan on XX/XX/XXXX even though they were given copies of the contract on XX/XX/XXXX. They ordered us to get a structural inspection, estimates for repairs, estimates for appliances, as well as resubmitting all the pay stubs, w2, and tax returns and such. We struggled back and forth with them because the items they were asking for did not line up with the FHA guidelines we were reading and so we questioned them. Every time we did they would come back with the same response. It is a Gateway requirement. As it was getting time to set a closing date they sent an email to us letting us know we would be required to put up money in an escrow for repairs. We began to question this and was asking why it was not going to be rolled into the loan. We further more was asking for a detailed explanation of how this was going to work so we could ensure we would get our money back because we needed it for other items. Then I sent an email that stated I had done some research on their company and how I discovered they had lost their license in other states, been banned in Georgia, and fined in many other states for fraud and I was just wanting reassurance we were okay. I sent this email to XXXX XXXX on XX/XX/XXXX. I also sent one to XXXX XXXX on XX/XX/XXXX. On XX/XX/XXXX I received a message from XXXX XXXX that we were headed back to underwriting for clear to close which we were trying to do on XX/XX/XXXX. Then all of a sudden on XX/XX/XXXX I received an email from XXXX XXXX that they had " missed the 6 month on job '' requirement for FHA. That I could go conventional if I wanted. I asked him to run the numbers and let me know that we could do that. I wanted this house. This house was not an easy home to replace. The price and amount of land it had does not happen in this market. I had 6 weeks and money invested in it. Then on XX/XX/XXXX he sends me an email that states he looked at it they were higher and he doesn't think we would want to do it. I then sent an email asking for the numbers so I could make the decision and I never heard anything back. I qualified for and had the down payment for a conventional loan. I was not given the opportunity to pursue a conventional loan nor was I given a reason as to why I could not. It was not XXXX XXXX 's place to make the decision for me as to whether or not I would want to do it or not. It was MINE. 

I believe this sudden interest in getting rid of me was because of my questioning the validity of some of their actions as well as my research into the company. I was retaliated and discriminated against because I was seeking the truth. Not only did I lose the house I wanted and invested money in I now am incurring more expenses while I find another home to purchase. All of the people involved deal with loans all day long. They did not " miss '' this requirement they just wanted me gone. 

XXXX sent me an email over a month ago stating I would be reimbursed for the XXXX XXXX ( {$350.00} ) and I have not received any compensation. I am also seeking compensation for the unnecessary expenses I have incurred because of the disregard for my interest.

Company response to consumer: Closed with monetary relief