Consumer complaint received 2023-03-22
Company: RANDOLPH-BROOKS FEDERAL CREDIT UNION
State: TX
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Closing on a mortgage

Complaint:
I am writing to file a complaint against Randolph Brooks Federal Credit Union ( RBFCU ) and to request resolution. The mortgage lender ( RBFCU ) approved an inexperienced builder as well as payments up to {$290000.00} based on the builders confirmation of completion. The financial institutions response was negligent and less than ethical. 

On XX/XX/XXXX, XXXX XXXX XXXX XXXX ( XXXX ) determined that my house is 56 % complete. On XX/XX/XXXX, the financed structure built was appraised by XXXX for {$500.00} after adjustment. This said, my home loan can not possibly be secured since the property has no value due to incurable physical deterioration allowed by the negligence that approved an unqualified builder to construct his first home project. {$610000.00} is the estimated total to demolish and rebuild my house in the current XXXX market. This is the amount required to bring my home to correct completion and city code. 

What happened was there were several examples of negligence and predatory behavior enacted by Randolph Brooks Federal Credit Union including : On XX/XX/XXXX, an incorrect subcontractor list was provided to RBFCU from the builder XXXX XXXX with the now forfeited XXXX XXXX XXXX Examples of work experience were all fabricated as well as the one reference XXXX shared that I called. Experience and qualifications were not confirmed by RBFCU. 

On XX/XX/XXXX, my builder was approved by RBFCU and later paid with no qualifications, with all responsibility for this decision falling on me, the consumer and homeowner. His LLC was forfeited before completion of my home. I didnt learn this until I hired an independent paralegal who uncovered what my bank missed. This resulted in a new home initially valued at {$570000.00} and is currently appraised for {$500.00} for the developed improvement. 

I received email confirmation from XXXX XXXX of RBFCU with the green light to close on XX/XX/XXXX. RBFCU did not confirm my correct closing XXXX or details ( corrected on XXXX XXXX and XXXX XXXX ) with me or the correct closing date with XXXX XXXX. My title company closing managers name that was provided by RBFCU on XX/XX/XXXX in the CD listed a former employee that resigned from XXXX XXXX months before my closing date. I jumped in to make the calls and to sort out the incorrect information in order to close in time. XXXX XXXX was frantic and gracious when I confirmed the date of my closing. 

On XX/XX/XXXX, I closed on my loan with RBFCU while at XXXX XXXX with my builder XXXX XXXX of XXXXXXXX XXXX XXXX. My address was incorrectly listed on the closing documents when forced by my builders inaction and the absence of the financial institutions checks and balances to extend my contract for XXXX on XX/XX/XXXX. 

XXXX emailed to ask me and the builder to confirm the completion percentage instead of hiring a neutral third-party capable of truthfully confirming the answer to the banks inquiry. While the builder stated the house was 95 % complete on XX/XX/XXXX, the XXXX XXXX XXXX XXXX determined by XX/XX/XXXX, that my house is 56 % complete. 

I requested on several occasionsincluding XX/XX/XXXX, XXXX RBFCU to request receipts from my builder, as required in the Improvements contract. This request was often met with silence. 

On XX/XX/XXXX, I was extended the offer by XXXX XXXX in a call to pay interest only until my lawsuit against the builder was resolved. This offer was revoked in a call on XX/XX/XXXX prompted by XXXX XXXX preferred form of communicationafter emailed confirmation on XX/XX/XXXX without explanation, construction completion, or a legal settlement. 

Recommending an additional loan at an interest rate 3X my initial interest rate to demolish and to build my home correctly, which would double my mortgage and payments. 

On XX/XX/XXXX, at the encouragement of an RBFCU veteran-member, I typed and mailed a letter to the XXXX XXXX XXXX XXXX after learning the loan terms would be converted immediately, voiding the offer that I honored monthly in a timely manner. The board representatives never responded. 

On XX/XX/XXXX, the lawsuit petition for my builder and his forfeited XXXX was produced and shared. 

On XX/XX/XXXX, RBFCUwhen forcing the conversion of my loan before 100 % completionattempted to get me to sign false documents for the converted loan. The materialsshared by XXXX XXXX on XX/XX/XXXX, XXXXreflected a lack of integrity by the financial institution and focused only on the protection of the bank and not at all for me, the consumer. I declined signing the documents. 

On the RBFCU Construction Loan Modification Closing Package, I redacted signing off on the : One Time Close Affidavit and Payment of Final Bills as it states Builder is certifying that the home is complete and that all contractors, vendors and suppliers have been paid in full. 

Borrowers Direction to Lender to Release Retainage at the Time of Closing into Permanent Loan, because the bank initially refused to release remaining funds to anyone besides my self-proclaimed and RBFCU-approved builder following my emails to XXXX XXXX of RBFCU on XX/XX/XXXX and XXXX, XXXX. 

I declined signing the One Time Close Affidavit of Completion and Payment of Final Bills that was focused on protecting the bank while forfeiting any available protections that would stand in in this situation. 

My custom new build was determined in the appraisal hearing that my house is 56 % complete. It was later appraised for {$500.00} as a result of incurable physical deterioration due to a foundation designed by an unqualified structural engineer and built by an RBFCU-approved unqualified builder. My house isnt warrantable for XXXX and XXXX. Since my new home has no value, my loan as I understand it can not be secured. 
On XX/XX/XXXX, I received a 54-page inspection report from a neutral / third-party TREC-licensed inspector detailing faulty workmanship that was not completed or to code, with items focused on safety. This did not include damaged or stolen materials in other areas of the build.

Company response to consumer: Closed with explanation