Consumer complaint received 2023-10-17
Company: Supreme Lending
State: FL
Product: Mortgage
Sub-product: VA mortgage
Issue: Closing on a mortgage
Sub-issue: Trying to communicate with the company to fix an issue with the loan closing

Complaint:
On XXXX XXXX we closed on our third VA home mortgage and it has been such a challenging process as the target continues to move as it relates to the VA appraisal as well as the lending process, not to mention the out of pocket expenses that keep adding up. We were told we are at the mercy of the VA appraiser and to his subjective demands by our lending poc- however after speaking to multiple VA representatives yesterday- it is clear we were taken advantage of. As such- two different VA reps provided me with the information for CFPB and recommended I reach out asap to start a complaint! 

At closing we ended up paying over {$30000.00} out of pocket- ( {$15000.00} VA funding fee ( which we have no issues with ) - however the {$13000.00} that they labeled as " 2.736 % of Loan Amount ( Points ) '' was not something we anticipated as we did not buy down any points. 

Currently- we have an outstanding inspection with our lender and the VA appraiser- however we have submitted a request to the VA XXXX department requesting their assistance in how to proceed- as we were told we have already completed more updates than should have been required according to the VA guidelines. 

There was the initial list of XXXX items on the XXXX completed on XXXX XXXX and then updated again on XXXX XXXX. Between the previous home owner and ourselves- we have completed the XXXX repairs on the XXXX however several of the repairs included were cosmetic in nature and we had concerns about the appraisal from the start. After weeks of back and forth, at closing we were provided with an updated list of Repair Escrow Terms which can be located starting on page XX/XX/ in the attached Overpass funding document. 

In emails and texts between us, our realtor, and the lender we were being told we wouldn't have to do thing certain repairs, and then told later we were responsible for making the repairs even though we questioned the validity of the required repairs as some were cosmetic in nature and did not seem to align with the VA guidelines. In the end- we were told we had to do certain cosmetic repairs to appease the VA appraiser XXXX XXXX and the VA . 

After going back and forth with XXXX XXXX from Everett Financial Inc, dba Supreme Lending ( I provided is XXXX and contact info as an attachment ) the initial home owner XXXX XXXX XXXX initiated the repairs process as it related to the " vinyl '' siding ( actually cedar siding- but the appraiser XXXX XXXX refers to it as vinyl ) missing in several places ( although the XXXX house wrap was present and signed off on by a licensed contractor ) in addition to repairing the kitchen wall. 

At that time- XXXX XXXX the VA appraiser ( # XXXX ) -and XXXX XXXX came out to assess the updates prior to us purchasing the home at which time he provided updated/new repairs as seen in Section I. which states Repairs : old damaged storage shed/barn needs to be taken down as it is now in severe poor condition, south side of roof wood damage that needs to be repaired/replaced, vinyl siding on home has not been completed ( when I asked for clarification I was told by XXXX that XXXX stated that it did not match ) , pool needs to be serviced, flooring on stairs, bedrooms, livingroom installed as current floor only has plywood, door frames installed, Well inspection. 

Per Section II Terms- of the Acknowledgement of Repair Escrow document ( again that begins on page XXXX of the attachment or can be seen in the screenshot above ) we needed to complete the work by XXXX XXXX however, after closing we received an email from the Lenders company on XXXX XXXX that stated the repairs needed to be completed NLT XXXX XXXX ( I included that email below ) This week we were contacted again by XXXX XXXX XXXX stating that we needed to schedule a time prior to XXXX XXXX for himself and the appraiser to come back out to the property and review the required updates that are listed above, but these are updated requirements with additional items added on our end- but not updated on the VA 's end according to the VA Review Appraiser that we spoke to yesterday and we are concerned for the following reasons : 1. We were not planning on taking down the storage shed/barn 2. The missing siding was replaced with newly purchased siding - there is no longer any exposed XXXX - ( and again of note neither the existing siding nor the new siding that we purchased is vinyl ) **Please see the text messages near the bottom of this email to get additional context as it relates to the siding 3. We were not planning to have " door frames installed '' as all the doors have door frames present- it is the trim that is missing on some of the doors within the home and this appears to be yet another cosmetic fix 4. For the well inspection- we just got the water tests back this past week and everything passed- so hopefully that would meet their request We have had to jump through so many hoops and pay out of pocket for so many things at this point- to include the {$8400.00} in the repair escrow- taking into account the amount of {$5600.00} with the additional 50 % ( {$2800.00} ) Escrow Holdback as stated in section III of the Overpass funding document. This was not the agreed upon amount submitted in the bids by the contractors- nor was the list of repairs the ones included in the bids that were provided. 

Per Chapter 8 of the VA Lenders Handbook the VA loan origination fee is not able to exceed 1 %. However, instead of calling it a loan origination fee XXXX XXXX and team included the extra 2.736 % - that they are calling POINTS- as you can see on page XXXX  in the Overpass funding attachment. The VA Lenders Handbook also states that there are certain fees ( such as the appraisal fee ) that are supposed to come out of that 1 % - however I paid {$650.00} out of pocket in XXXX for the original Appraisal- but at closing I was charged a second time for the {$650.00} Appraisal Fee and a second {$120.00} for the Inspection fee. Even though I already paid {$650.00} out of pocket at the time of the initial appraisal. 

We have additional emails from XXXX prior to closing- when we were asking to see an update of the numbers- and you can see again where he calculated the Discount Points into the loan- even though we stressed we were not buying down points. We got on a 3 way call with XXXX and the Realtor at which time he admitted the fee was not for points- but was the loan origination fee- he told me, " You can call it whatever you want to call it, but honey, money costs money. '' This also became an issue at closing when they presented us with a sheet to buy down points- that the XXXX from the title company and XXXX XXXX the realtor- told us not sign and complete- as we were not buying down points ( I do have a picture of it though as they advised I take one ). This appears to be an attempt at deception- as any review would see it written as " points '' and think it was a points buy down- when in reality- it is their loan origination fee that they have marked up almost 3 times greater than what is allowed. 

As mentioned above- I have XXXX faith in the reliability and accountability of both XXXX XXXX and XXXX XXXX XXXX based on the ongoing experiences. I have multiple communications with XXXX that I could share with you- but as this is already such a lengthy message- I will share with you just a few to support that they continue to string us along and go back and forth on what has to be fixed and what does not and what they are allowing as it relates to the siding : XXXX, XX/XX/XXXX XXXX XXXX : ( in reference to the XXXX wrap ) Appraiser is being a jerk about the siding. Said that covering what is up there now means they are trying to hide something. He wants it removed and replaced XXXX siding. You or another contractor is probably going to have to call him. He wont allow painting the floor either. Splinters present an unacceptable hazard to the VA according to this guy. XXXX I'll get you his number later tonight. 

XXXX, XX/XX/XXXX XXXX XXXX : The wrap would not be removed it is required as a barrier beneath the exterior cladding of the home. It sounds more and more to me like this guy has no idea what he is talking about. He called the wood siding vinyl multiple times in the report. I will speak to him, hopefully he will listen to someone with actual knowledge of the construction industry. 

XXXX, XX/XX/XXXX XXXX XXXX : I am afraid we are to the point- I have tried twice. Nothing to lose but I was hoping to get by with a contractor letter to that effect but I have no guarantees he will accept it. I say we get the explanation letter about the wrap/siding/solution and get that to him along XXXX the other estimates before we go calling him. Just my 2 cents tho. 

XXXX, XX/XX/XXXX XXXX XXXX : I just talked to the appraiser. Siding HAS to be completed before he will pass the property. I should be able to get an extension to 30 days after closing to complete and over $ XXXX escrow holdback but need the 2 detailed estimates asap. VA appraisal review rep I spoke with said if she were reviewing the appraisal she would NOT allow for the property XXXX waiver either for the missing siding. And he also said " no '' to just putting up generic siding where it is missing- whole house exterior needs to be done. 

At this time- I am unsure how to proceed and hoping that someone with more experience and knowledge can take a thorough review of our VA home loan. It feels as though we were taken advantage of at several turns, which has financially exhausted us, not to mention the ongoing stress/fear as it relates to inspections and funding based on the subjectivity of what appears to be an unqualified surveyor. I apologize for the length of this message and the fact that it jumps around- it is just a ton of information to try and convey.

Company response to consumer: Closed with explanation