Consumer complaint received 2022-02-03
Company: Jet Direct Funding Corp
State: SC
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
I am requesting the Consumer Financial Protection Bureau investigate Jet Direct Mortgage, XXXX XXXX  XXXX XXXX, XXXX XXXX, XXXX XXXX, NY XXXX, and their loan officer XXXX XXXX XXXX, XXXX XXXX for mortgage fraud involving the sale of my house to XXXX XXXX. 

At the closing, which took place on XX/XX/XXXX, XXXX XXXX stated that, he was the bank to my sister. My sister, who is a title closer, had Power of Attorney to sign documents for my husband and me. 

After the closing was complete, my sister contacted me regarding XXXX XXXX statement. We were completely shocked by this revelation and immediately began researching if XXXX XXXX was an employee of Jet Direct Mortgage. In short order, we discovered he was listed on the Jet Direct Mortgage website as a loan officer under the name XXXX XXXX. Attached is a screen shot from the Jet Direct Mortgage website. We subsequently verified this on the XXXX consumer access portal where he is identified as both XXXX XXXX XXXX and XXXX XXXX. 

I immediately contacted my realtor XXXX XXXX and asked him for all documentation associated with XXXX XXXX offer to purchase my property. XXXX XXXX forwarded me XXXX XXXX pre-approval letter from Jet Direct Mortgage. I had never seen this document before. I was shocked to discover that XXXX XXXX signed his own pre-approval letter using two different versions of his name. Attached is the pre-approval letter signed by XXXX XXXX, Licensed Loan Originator for Jet Direct Mortgage, pre-approving a loan for XXXX XXXX XXXX. 

Had I seen this letter when I accepted his offer, I would have immediately questioned why the buyer and the loan officer had the same last name, and I would have done my due diligence to investigate this coincidence. XXXX XXXX never disclosed to us that he was a loan officer pre-approving and originating his own loan. As a licensed Mortgage XXXX XXXX, XXXX XXXX had a duty to disclose this very pertinent material fact that would have affected our decision to enter a contract with him. His actions are a clear violation of banking law. 
Jet Direct Mortgage is required to determine, pursuant to 3 NYCRR Section 420.18 ( a ) ( 2 ), that as a condition of employment Mortgage Loan Originators in its employ will engage in mortgage loan originating honestly, fairly and effectively. Jet Direct Mortgage clearly violated this law with respect to the activities of XXXX XXXX in entering a contract to purchase my home. In researching this, I came across a settlement agreement between Jet Direct and the New York State Department of Financial Services for a violation of 3 NYCRR Section 420.18 ( a ) ( 2 ). 

XXXX XXXX XXXX entered a contract with my husband and I to purchase our property for {$510000.00}. Attached is the signed contract dated XXXX XX/XX/XXXX. We received at least 12 offers, the highest of which was {$520000.00}. We accepted XXXX XXXX offer because there was only one buyer and a larger down payment. Had I known that XXXX XXXX was originating his own loan we would have never accepted his offer because of the blatant conflict of interest. We would have gone with the higher offer. On XX/XX/XXXX the contract was amended to change the name of XXXX XXXX XXXX to XXXX XXXX XXXX. At this point it should be very clear that XXXX XXXX and Jet Direct mortgage were trying to obfuscate the real identity of the purchaser of our house. 

We were shocked when the appraisal, which was ordered by the bank XXXX XXXX works at, came in at {$480000.00}. We had more than 12 offers on our property with highest being {$520000.00}. I sent the appraisal to my brother, who is the President and COO of a bank, to review. His loan officer said there were many things that were suspect about the appraisal, not the least of which was using houses that were not comparable to mine. 

None of us were happy about the appraisal, and now it makes sense. When a loan officer, who is also the buyer of my property, gives business to the appraiser, it makes sense to me that the appraiser would want to give the loan officer a lower appraisal for a house he is buying. I had no choice but to modify the contract price to {$480000.00}, because my husband has major health issues and was out of work and we were not in a financial position to stay in New York. Attached is the contract modification lowering the sales price. 

During the inspection of my home by XXXX XXXX inspector, I had the opportunity to talk to his realtor who was running the show. In addition to the inspector, she brought along a contractor who she said was going to turn our first floor into an apartment. I asked her if XXXX XXXX was an investor and she said yes. XXXX XXXX showed up when the inspection was complete. At the closing my sister heard XXXX XXXX talking to the other parties present about all the real estate deals they were working on together. We suspect that XXXX XXXX flips properties. I would not be the least bit surprised to learn that I was not the only victim of XXXX XXXX and Jet Direct Mortgage fraudulent practices.

I have attached a letter I sent to Jet Direct Mortgage which was delivered to them on XX/XX/XXXX. Also attached is their response from their attorney XXXX, XXXX, XXXX and XXXX XXXX. The essence of their defense is Seller Beware. It should be noted that the law firm that wrote this opinion benefited from the closing as they were paid by Jet Direct Mortgage, so their opinion is hardly an unbiased view.

Given what I have presented above, I am requesting Jet Direct Mortgage reimburse me, at a minimum, {$44000.00}. This amount is the difference between the {$520000.00} offer I received from another bidder and the appraised value of {$480000.00}.

Company public response: Company disputes the facts presented in the complaint
Company response to consumer: Closed with explanation