Consumer complaint received 2017-05-06
Company: SUN WEST MORTGAGE COMPANY, INC.
State: NJ
Product: Mortgage
Sub-product: FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
In XXXX of XXXX, Sun West Mortgage Company issued me an FHA loan for the purchase of my primary residence. I have reasons to believe Sun West Mortgage Company failed to meet " HUD Quality Control Requirements '' when  underwriting my loan. Deficient and poor underwriting practices lead to enormous losses to the Federal Government, and also to individuals ( a. individuals to whom loans are issued, b. millions of taxpayers ).
I have reasons to believe that Sun Wests underwriting of my loan was deficient, having " excessive qualifying ratios '' and " insufficient compensating factors ''. HUD 's handbook requires that lenders gather significant compensating factors to approve loans that exceed HUD-FHA 's limits. One compensating factor, for instance, would be for S
Sun West to require a borrower to come up with a larger down-payment. Sun West, however, failed to gather any significant compensating factors to approve my loan. 1. My debt to income ratio was too high, exceeding HUD 's benchmarks. 2. Sun Wests underwriters qualified my commissions as " acceptable '' and " verifiable '' income, even though I had been at that job for less than a year. I had also just recently moved to New Jersey.
3. Sun West hired their own appraiser as required by FHA, which appraised the value of the home at exactly what the seller was asking for ( at {$270000.00} ). I later found out that the seller had purchased the home for only ( {$110000.00} ) just seven months prior to the appraisal. The seller did poor and minor work at the house ( obviously not spending more than {$10000.00} ). The nearby homes had been sold for a much lower price, thus, leading me to believe that the
appraiser was in collusion with the loan officer to get a high appraisal, to get that loan approved quickly, through a " lethal predatory lending '' that has now put me on route to foreclosure. It has caused me substantial financial loss.
5. The loan officer had contacted me through a lead that was given to him by my realtor. Sadly enough, my realtor lacked integrity and honesty. At this particular sale, my realtor was violating several New Jersey Real Estate laws ( he and the seller, who were in collusion, were later fined by the State of New Jersey for these violations ). After reviewing all communications with my loan officer and my realtor, it appears to me that the loan officer did not act in good faith at the issuance of this loan. It appears to me that he served the best interest of the seller and of the realtor ( who at this sale, failed to disclose that he was a dual agent ). As a matter of fact, the seller was a broker ; she and the realtor had an employer-employee relationship. 5. After contacting Sun West about being a possible victim of fraud and " predatory lending '', Sun West failed to provide me with an adequate response, and my loan was quickly transferred over to XXXX ( which is the mortgage bank that now shows on my credit report ).

Company response to consumer: Closed with explanation