Consumer complaint received 2016-02-16
Company: DHI Mortgage Company
State: OR
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Credit decision / Underwriting

Complaint:
On XX/XX/XXXX we entered into a contract with XXXX XXXX ( homebuilder ) and DHI ( lender ). Several discussions with their MLO XXXX XXXX ( XXXX XXXX ) led to a submitted application and preapproval. It was during this preapproval that we discovered the existing of a Federal Tax Lien on my husband 's ( XXXX XXXX, XXXX ) bureau. We believed at the time the lien was associated with his father. My husband does out past income taxes and is currently on a repayment plan, paid as agreed. This was disclosed to the MLO. On XX/XX/XXXX XXXX emailed us to inform us that the application was going to be receiving credit approval ( conditional ). We fully expected to be required to provide proof of payments, balance, etc. but to our surprise XXXX asked for nothing pertaining to the XXXX. On XXXX XXXX was provided a copy of the installment agreements and payment history for the lien after a discussion with my husband. XXXX acknowledged receipt of the documents. We received a conditional approval on XX/XX/XXXX from XXXX XXXX ( XXXX XXXX ) and satisfied the conditions of the approval ( which still requested nothing regarding the lien ). On XX/XX/XXXX I received a call from XXXX stating that the underwriter made a mistake and realized that a conventional/conforming loan was not an option as it could not be sold to Fannie/Freddie and they would need to have us enter into an FHA loan instead ; which required even more money down due to XXXX XXXX FHA limits. 
The error is this. XXXX was provided the information and in escalating the satisfied conditional approval of the conventional loan it was revealed to me by XXXX XXXX ( Asst. Nat'l Resolutions Manager ) that in an internal email/document between the underwriter and XXXX AFTER having received our lien documents and payments that he informed underwriting the tax debt/lien was not associated with XXXX which led to their credit approval. It is my strong belief that this is a violation of UDAAP in that XXXX had direct knowledge and confirmed receipt of the information but withheld the information in an attempt to gain the approval. However, at my request, I asked XXXX to investigate the loan amount on the approval as it was $ XXXX short at which time underwriting somehow became aware of the voluntary and/or deliberate withholding of our credit information and XXXX contacted me to pursue the FHA loan instead. 
The situation was escalated and XXXX ( ph # XXXX ) admitted there were " communication errors '' on behalf of XXXX but that we 'd be required to pursue the FHA loan and provide approximately $ XXXX in closing costs. She acknowledged with XXXX 's manager ( XXXX ) on the phone that errors were made but XXXX would not portfolio our loan and our only option was the FHA. I cited my concern with UDAAP, ECOA, HMDA, and TILA and asked to speak with a compliance officer or legal team representative and she refused to provide me any contact of a subject matter expert. I have every conversation in email as well as our conditional approval and conditional credit approval that were both satisfied.

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