Consumer complaint received 2015-11-19
Company: NATIONSTAR MORTGAGE LLC
State: TX
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Application, originator, mortgage broker

Complaint:
I 'm filing a new complaint because previous complaint ( XXXX ) was closed ( I failed to timely dispute the last response from the mortgage company which I overlooked ). 
My mortgage company approached me about refinancing my home loan for Texas property. We went through the entire process of assembling the paperwork, appraisal ( & gt ; 3 times the loan value ), credit research ( excellent credit ), perfect payment history on existing loan, etc. The property had to be considered investment property because, though I 've owned it since XXXX, lived there until XXXX, still have utilities in my name, my family still lives there and it 's the only property I own, I live XXXX miles away managing multi-family property owner by a family XXXX and my Texas Driver 's License has that address. ( I informed them of these facts at the onset of the loan consideration. ) They said I would have to give up my homestead exemption, which I reluctantly did since the lower payments would enable me to pay the higher taxes. No sooner had I done that when they then said I could n't refinance the loan because I did n't have a homestead exemption on the property XXXX miles away that is in no way connected to this loan. 
I was given the following options : 1 ) Change all my driver 's license and other records back to the loan property address ( which would be lying and virtually impossible to do ) ; 2 ) Declare the property as a XXXX home and, since no one can live there but me, kick my family out on the street ; or XXXX ) Have the multi-family residence owned by an XXXX deeded to me alone and get a homestead exemption there. 
In response to my previous CFPB complaint the company submitted a boilerplate response that they had received the complaint. They later submitted a final response dated XXXX/XXXX/XXXX which I accidentally overlooked and failed to dispute. I do take issue with their explanation in the XXXX paragraph of that letter ( attached ) regarding what I was told and the sequence of events and it failed to answer the key question. The letter claimed " this particular guideline is in place to remain compliant with Texas state law regarding 'cashout ' or Texas home equity loans. " I DO somewhat understand the part about giving up the homestead exemption on the loan property though I believe Texas should allow a person to keep a single longstanding homestead exemption on the only property they own even though they are not currently living there. I do NOT understand why the underwriters would care about my having a homestead exemption on OTHER property that is not involved in an investment loan. Are we to believe that, under Texas law, investment loans can not be refinanced unless the borrower has a homestead exemption wherever they currently live, a circumstance that must be very common? 
I submitted a request to have my homestead exemption reinstated and was denied. Since I 've now lost the homestead exemption on the loan property, and the property is appraised at a higher value, my tax payments for this year have risen over 10 % and I 'm left without the refinance to enable payment of those higher taxes.

Company response to consumer: Closed with explanation