Consumer complaint received 2023-03-30
Company: FIRST ALLIANCE HOME MORTGAGE
State: PA
Product: Mortgage
Sub-product: FHA mortgage
Issue: Closing on a mortgage

Complaint:
I am filing this complaint against First Alliance home mortgage. Back in XXXX XXXX, I applied for a mortgage through XXXX XXXX for a FHA loan due to my low credit score and financial income. I worked with a man named XXXX XXXX ( this complaint isn't directly at him ) who was with XXXX XXXX XXXX and then went to First Alliance mortgage. This is where everything went crazy, at one point I could actually sign into 2 different mortgage companies web sites because one was opened at XXXX XXXX and then one was opened at first alliance which I was told was illegal to be happening yet it did. Anyways after XXXX went from XXXX XXXX  to first alliance my loan ended up there and the whole process started again. After going through XXXX getting approved for a loan due to low credit and income the first alliance company kept trying to approve me for more then I had to put down ( {$8000.00} ), my realtor and I told them ( {$8000.00} ) was my max so we had money to move with, mortgage was supposed to be XXXX XXXXXXXX {$520.00} ended up being {$620.00} and all of my money plus an over {$2000.00} loan was needed plus I ended up in court. They repeatedly kept approving me with thousands more then I had to give them, which no one understood because I never once had that kind of money. I eventually got approved for the loan for above what I had financially, my credit score was enough and my income was justified and First Alliance actually approved me, sent the closing papers to my realtor and I to sign and we had a closing date. Well after all that and for the exact reasons my loan was approved for they turned around and didn't honor the loan after XXXX XXXX did all that work and got me approved by saying my income and credit wasn't good enough to give me the loan. The same credit and income that got me to the closing part of the mortgage is the same credit and income they used as a excuse to deny me the loan that they already had approved me for and sent to closing. Between the two companies my credit almost ended up not being enough but was still barely above what was needed for a FHA loan.I was informed by realtors and employees of XXXX XXXX that XXXX got the loan fully approved and that it was illegal what First Alliance did by approving me for the loan then not honoring it. I have never bought a house and everyone involved knew this and whatever was happening behind the scenes with employees jumping back and forth between the 2 companies caused a bunch of us customers ( apparently I wasn't the only one ) to get turned down for our loans after being approved for them. I was told they broke the law by doing what they did ( going on that from what employees are stating ) especially with it being at closing and as a result I lost a few thousand dollars in moving costs and being stuck in an apartment I gave my 30 days notice to resulting in my fiance and I being taking to court which was another {$1000.00} out of my pocket. What started out as {$8000.00} down with estimates of mortgage being {$500.00} to {$520.00} ended up being everything in my account, almost {$6500.00} plus I had to borrow over {$2100.00} to be able to close. I lost all but {$5000.00} and due to first alliance denying my loan after it had been approved because of above mentioned court and moving fees and borrowing money to close that wouldn't have happened had they not denied the loan they approved me for. I've been afraid to file anything for fear of somehow losing my home but I can't just sit back after losing several thousand dollars and being told by several people involved that what they did was against the law and if it was according to realtors and employees then I think it only fair they compensate me at the least the {$5000.00} I lost and then some for the living XXXX they caused my family, we where literally facing being on the streets from all of it. I feel after what I've been told that something very shady happened and if this is the case I feel I should be compensated for my losses. XXXX XXXX XXXX ended up giving me the loan after everyone left to first alliance then came back to XXXX XXXX and they said they were going to be filing something against First Alliance through the state because they did this to a few people and once again telling me what first Alliance did was against the law. I live on XXXX and getting a lawyer is tough but will do what I have to if the law was broken and we can't come to an agreement. I have emails, downloaded documents and even screen shots showing I had 2 different companies having a portfolio open on me for a loan. Something happened between these 2 companies and I'm not 100 % sure what actually did happen but one to many people involved said it was illegal so here we are. Got one mortgage company saying the other one had no right to turn me down for a loan after approving me for it and that it was illegal resulting in me being out {$3000.00} and having to borrow {$2100.00} to get a loan approved that was already approved by another company. So we got what ended up being over {$5000.00} I got hit with that according to everyone involved should have never happened and was according to several people involved was illegal. I am purposely not mentioning all names involved because If I do have to get a lawyer over this I'm not putting all of my cards on the table for anybody involved to try and cover up. I probably wouldn't know or have filed this but I have heard " what they did was illegal '' to many times and it cost me a couple thousand dollars just to ignore it. Like I mentioned, this complaint is focused at first alliance home mortgage and it's confusing because of employees from the original mortgage company being XXXX XXXX jumped ship to first alliance then went back to XXXX XXXX who in the end the loan went through but only after several estimates and lots of credit checks from both companies, resulting in excessive credit inquiries which took my score from being more then enough for the loan to barely being enough for the loan and the amounts to close exceeding what I even had in the bank to me and my fiance ending up in court and paying for that and borrowing money to move and to put towards the closing costs all of which could have been avoided had I not been approved and then denied the loan first alliance originally committed to. Like I mentioned I have screenshots and texts on another device to back up a lot of conversations that happened throughout this process but simply can't download at this time and honestly would like to hold onto in case this turns into a who said what thing and goes on further then this.

Company response to consumer: Closed with explanation