Consumer complaint received 2016-10-11
Company: Guild Mortgage Company LLC
State: NV
Product: Mortgage
Sub-product: FHA mortgage
Issue: Credit decision / Underwriting

Complaint:
In XXXX of XXXX, I met with a local rep from Guild Mortgage and was given a verbal pre-approval on a home loan. In XXXX. I found a home and wrote an offer. After 90 days, 4 extensions on the loan approval date and countless discussions with Guild management, the loan still was not approved or denied. At each extension I was told we were " almost '' ready to close. Since this was my first attempt at purchasing a home, there were many things I did not know. I have since discovered that I should have NEVER been given a pre-approval on a XXXX loan with a XXXX annual income and over XXXX in vehicle debt. I now know that when calculating the debt/income ratios, those numbers simply do n't work. I did not know that then, and relied on my contact at Guild to be professional, honest and reliable. 
So, I proceeded with the transaction based on information I was given by Guild. Our original close date was XXXX/XXXX/XXXX. Loan approval extensions were written on XXXX, XXXX, XXXX and finally to XXXX with a closing date of XXXX. On or around XXXX Guild came back and told me they could not continue the transaction if my XXXX ( my mother ) did not relinquish her responsibilities as Buyer 's Agent and assign someone else to complete the transaction. This relationship obviously was disclosed in the initial paperwork -- and after 2 mos. they decided it was an issue. When they were asked about this, even Guild upper management was unsure why -- but insisted it must be done. Finally after my agent researched and found it was not a XXXX issue - Guild said it was their own underwriting requirement which apparently no one knew. It seems that should have been one of the first things addressed ... not the last. On XXXX an Addendum was written to address that. I was initially told that XXXX of vehicle loans would not be considered as part of my debt because there were less than 10 payments to be made. At the end of XXXX -- they told me that was wrong and that the debt would have to be considered or paid off. Another issue that should have been addressed immediately, not a week after the original close date. Despite continued efforts to get the loan processed they still could not approve or deny. Many days, I left work early to instantly provide any and every piece of documentation they asked for. When the XXXX loan deadline came and they still had no answer -- I pulled my paperwork and went to another lender in a desperate effort to get this pulled together. He went over numbers with me and told me the only way I could meet debt to income ratios would be to payoff or sell both vehicles prior to close. He could not understand how a pre-approval was given to me under the circumstances. He actually did the math with me so I could see, that Guild should have never given a pre-approval. I sold one vehicle at a loss and paid off the other. They said there was no problem with my XXXX being my Mother since it had been disclosed in the initial paperwork. They started loan app on XXXX/XXXX/XXXX and came back with a verbal approval on XXXX/XXXX/XXXX. They were able to accomplish in less than 10 days when Guild could n't do in 90 days. Unfortunately, that did not allow enough time for me to close the deal prior to the XXXX final deadline and XXXX XXXX would not extend. So I lost the house. 
Obviously, had Guild been diligent in their process of working debt to income ratios -- and told me I needed to get rid of XXXX in debt in order to qualify I would not have initiated or proceeded with the transaction. I would not have spent or risked earnest money, nor would I have paid for inspections and appraisals had the full picture been disclosed upfront. 
This is gross negligence from a nationally recognized lender. Guild management has not responded with expertise, honesty or integrity.

Company response to consumer: Closed with explanation