Consumer complaint received 2017-09-26
Company: Mortgage Research Center, LLC
State: GA
Product: Mortgage
Sub-product: VA mortgage
Issue: Closing on a mortgage

Complaint:
My Husband and I applied for a mortgage thru XXXX XXXX XXXX XXXX. from the first discussion, we explained our plan to move closer to our children, and my husband plans to retire. We are both currently employed, my husband is a XXXX XXXX veteran, and our combined income at the time was XXXX annually. We discussed our plans to purchase a home, my husband would retire, and at that time I would seek comparable employment in the area of the home purchase. The new purchase is 200 miles from our current residence. Our plan was to purchase the home, sell our existing home, direct all proceeds toward the principle of the mortgage and in the interim, I had family members near our current residence to provide housing allowing me to continue with my current employer. I have been with this employer for 37 years, have built a professional career and reputation, and planned to travel to the new home on days off. We were immediately prequalified for a mortgage of XXXX. We found a home, negotiated a contract, and began to complete the mortgage process. we had no contact with XXXX XXXX for three weeks expecting all was proceeding well. Our FICO score is excellent, debt to income ratio is below 30 %, and all other necessary requirements easily met. Over the past two week, we have been in daily communication with our loan officer to provided requested documents immediately. we have been asked to write letters explaining our reason to move, our plans to sell our current home, travel plans for myself, property information for my families home, and many other documents. All were provided within 24 hours of the request. At no time were we informed of ANY possibility of the loan being denied. two weeks ago, my husband was asked to provide documentation of a date of his retirement. He had previously planned to retire at the end of XXXX, but moved the date forward to XXXX XXXX to satisfy the request from XXXX XXXX. Last week, we were notified of contingent approval from underwriters pending a letter from me again explaining my employment plans, a copy of my Power of Attorney for my family property, tax and insurance information for that property. Again at no time were we informed of any possibility of denial of this loan. Four days prior to closing, we were contacted telephonically by XXXX XXXX of denial of our loan by the underwriter based on criteria that is unacceptable. The reason stated was unable to approve the loan based on my husbands social security/veterans income solely. My income ( XXXX annually ) was could not be included in the loan as I had not proven local employment, and my current employment was " uncertain. '' I reminded them of our impending expectation to close the loan, utilities already under deposit, and asked for our recourse. The reply was there is no recourse, the denial was final. 
At no time during this process over the past six weeks has there ever been a discussion of the possibility of denial based on local employment, and there was NEVER information provided as a mandatory expectation of VA loans to validate local employment. Initially, I asked to use my husbands current salary of social security/VA benefits/and salary of XXXX annually to qualify, but was instructed to remove his employer salary as he had planned to retire. he has now given a notice of retirement to his employer, so we will now be without his salary as well. The loan would have been approved had we included his salary in its entirety, but now have no recourse to resurrect this loan. 
My employment is far from uncertain, and at no time did we mislead anyone at XXXX XXXX. I was asked to write numerous letters explaining my plan as a " trailing spouse '' and compiled letters exactly as I was directed by the loan officer. Again, we have never been informed of the requirement of VA loans to provide evidence of local employment. 
Currently we will lose our earnest money, cost of VA appraisal, cost of inspections, cost of utilities deposits, cost of home insurance, my husbands salary, and the cost to apply for a loan with another lender without VA mortgages. Our total potential loss is greater than XXXX if cash outlay, and have no recourse. We also could lose the home to another buyer if no alternate mortgage is available to us in a timely manner. 
XXXX XXXX XXXX XXXX is a very large company with what seems positive reviews from buyers. Our experience has been completely different. I am pursuing options to file an official grievance, attempt to recover financial losses, and actively locate a lender who is interested in working with us.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation