Consumer complaint received 2021-04-24
Company: American Financial Network Inc.
State: TX
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
OVERVIEW ( XX/XX/XXXX ) In early XX/XX/XXXX, my wife and I found a home to purchase in XXXX, TX. We were referred to XXXX XXXX in XXXX, TX for mortgage lending and specifically to XXXX XXXX, mortgage loan officer to secure a non-conforming loan. My wife and I have collectively purchased over XXXX homes in the past 25 years and are very familiar with the typical mortgage lending process involving both conventional and jumbo or non-conforming loans. 

Following initial introductions, XXXX XXXX requested information to verify income, run credit reports, etc. in order to start the loan process. All documents were submitted on XX/XX/XXXX and the prequalification letter for our home purchase was issued by XXXX XXXX on XX/XX/XXXX. 

Following receipt of the prequalification letter, standard documentation requests were received by XXXX and promptly responded to, typically within 1-2 hours, by my wife and me. Additionally, as requested by XXXX, my wife and I continued to send new paystubs and/or bank statements as they arrived. During this process we received congratulatory emails stating that our loan had been approved and that all was on track to close on XX/XX/XXXX. There were no additional requests made until late in XXXX, which we felt was different than our many previous experiences with home loans. While the new requests seemed out of ordinary, my wife and I quickly supplied all requested documents and were again reassured in writing that the process and closing date was all on track. 

On XX/XX/XXXX, XXXX days before we were scheduled to close, we received a request from XXXX XXXX to delay the closing by one week to XX/XX/XXXX as the XXXX XXXX underwriter needs more time. We obliged and delayed our trip from XXXX  to Texas by one week costing us airline change fee penalties. Again, we were assured that this was only to allow a little extra time and that there were no concerns, etc. 

It wasnt until XX/XX/XXXX, the day prior to the scheduled closing, we received an email from XXXX XXXX requesting a statement from my XXXX divorce attorney providing a status update on the division of assets, an opinion about the XXXX divorce case, and an update on the spousal support that is being paid. It should be noted that the spousal support was disclosed in the first week of the lending qualification process including a signed copy of the divorce decree and spousal support order. This request was extraordinary and extremely over-reaching. However, after normal business hours, my XXXX divorce attorney obliged with a written response that she sent directly to XXXX XXXX at XXXX XXXX time. XXXX XXXX did not acknowledge its receipt until the following day, Thursday XX/XX/XXXX XXXX scheduled closing date XXXX at XXXX noon. 

On XX/XX/XXXX XXXX scheduled closing date ) at XXXX, a conference call was held between my wife, myself, several representatives from XXXX XXXX and our realtor. During this call XXXX XXXX  began challenging the validity of my XXXX XXXX  divorce decree, my marriage to my new spouse and co-applicant in XXXX of XXXX, and other nonsensical allegations including quoting " XXXX XXXX XXXX XXXX '' as a reason why my divorce decree is in question. This call was outrageous, unprofessional, and a clear discriminatory attack against my marital status. As I was outraged by the position that XXXX was taking at this phase of the process, I insisted that a video call with all parties take place including my XXXX XXXX divorce attorney. Both the realtor and my divorce attorney had never heard of the " XXXX XXXX XXXX XXXX '' that was being referenced by XXXX and my attorney reiterated that many California divorcees purchase homes and get funding through Fannie Mae without any issues. When asked to provide the exact code, regulation, clause, or section from the XXXX XXXX  XXXX XXXX for the requested non-conforming loan, XXXX XXXX was never able to or refused to provide despite numerous requests. 

At the end of the video call, and having missed the rescheduled closing date, the seller relisted the home the evening of XX/XX/XXXX. My wife and I were in a hotel room in XXXX, TX without a mortgage, with a vehicle full of personal effects that was moved from XXXX to Texas in anticipation of this rescheduled closing. XXXX XXXX stated that they would continue to try to find another solution for us. The seller insisted that if we wanted another two week extension to the purchase and sale contract to allow us time to work with a reputable lender, it would cost us another {$5000.00} in cash which we gave him the following day. 

On Friday XX/XX/XXXX we contacted another lender, XXXX in XXXX, TX. After the initial telephonic meeting, all standard and typical financial information ( income, debts, etc. ) were supplied to XXXX. The process was completed, and our mortgage was funded in 7 business days without any delays, over-reaching requests, discrimination, or unethical and unprofessional behaviors as displayed by XXXX XXXX. This expeditious approval is what we have been used to in the numerous previous lending transactions we have experienced over the past 25 years. 

On Tuesday, XX/XX/XXXX, my wife and I received letters from XXXX XXXX that our loan was denied as our " income was unverifiable ''. Once again, complete untruth, change in position, and contrary to the numerous previous communications in which pay stubs, tax records, W2 statements, and the opportunity by XXXX to verify, from our respective employers, our employment statuses and income. XXXX had a duty to verify both of our incomes and it appears that they chose not to verify my income, but they verified my wifes income. It is worth noting that I have been employed with my current employer for XXXX years and my wife has been employed with her employer for approximately XXXX years. 

Due to the unethical, unprofessional, and discriminatory actions by representatives of XXXX, my wife and I have logged every phone call, email, and communication on a matrix with supporting evidence which are available upon request. 

In summary, XXXX XXXX and its representatives discriminated against my wife and I due to my prior divorce status in XXXX  and displayed unprofessional behavior, untruths, and unethical lending practices. We are requesting that XXXX and their representatives be investigated and reprimanded for these unconscionable actions. 

x : XXXX XXXX x : XXXX XXXX

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