Consumer complaint received 2016-10-31
Company: LD Holdings Group, LLC
State: NJ
Product: Mortgage
Sub-product: FHA mortgage
Issue: Application, originator, mortgage broker

Complaint:
I attempted to refinance with LoanDepot.com to lower my interest rate on my existing mortgage. After the appraisal of my home, my LoanDepot.com contacts never called and I could not reach them. A Customer Care Representative for Loan Depot, XXXX XXXX XXXX called and I explained to him that my supposition was that I had not heard from anyone from Loan Depot at the conclusion of the appraisal because of the extremely low value placed on our home by the appraiser. The market value of our home was estimated at {$360000.00} by the appraiser chosen by Loan Depot. This was curious in that this is the same value that The County of XXXX ( NJ ) uses as their appraised value of our property when calculating our taxes. And, it is fairly well known that the appraised value used by the government is historically low. I have purchased XXXX homes in XXXX cities in my 35 years of home ownership, yet I have never, ever seen an appraiser simply lift the appraised value of a home from the tax records that are available to any citizen upon request. I consider an appraisal based on publicly available tax records to be suspect at best and dishonest at worst. I believe that for the price charged by appraisal companies and paid for by consumers, {$390.00}, deserves more than a stroll to the county tax board. 

Even more curious is the fact that XXXX year earlier ( 2015 ), for the purposes of obtaining a home mortgage, our home was appraised at {$480000.00}. In the same year ( 2015 ), our home was appraised for {$460000.00} on behalf of a different lender. Even more infuriating is when I pay my homeowner insurance premium, the cost is based on a replacement value for my home of {$620000.00}, as established by an independent engineering firm. 

Because of the inexplicable results of Loan Depot 's appraisal, which is contrary to all logic and factual analysis, I disputed the charge of {$390.00} for the appraisal which was placed on my XXXX credit card. Although XXXX XXXX states that " Federal policy does n't allow us to influence the market '', it was Loan Depot that fought my dispute that I filed with XXXX. The appraisal company was nowhere to be found. Because Loan Depot fought for my {$390.00} dispute, I would suggest that this represents a conflict of interest. In my opinion, a mortgage company should not be arguing and defending the appraisal company. I fail to see where Loan Depot has standing regarding this charge. It is money owed to the appraisal company, not Loan Depot. After reading the Dodd-Frank Act and the Congressional Intent of this legislation, either Loan Depot " fighting '' for money owed to an appraisal company is a direct conflict of interest or at a minimum, it is an appearance of a conflict of interest. Shame on Loan Depot to hide behind " Federal policy '' when it is advantageous for them to do so and to ignore " Federal policy '' where there is a possibility of forfeiting not their money but the money charged by an appraisal company, an appraisal company that Loan Depot claims not to have a relationship. ( XXXX credit card documents included in the uploaded attachment ).

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