Consumer complaint received 2022-08-03
Company: NFM, INC
State: VA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
To Whom It May Concern : Based on the advice of two venerated lenders in the XXXX area, I am submitting a grievance against XXXX XXXX of NFM Lending ( XXXX  # XXXX ). 

In XX/XX/XXXX, my parents gifted me {$400000.00} to buy a house. Note, I was hit very hard by Covid and had to start an entirely XXXX XXXX, which is growing but is not supporting me in the way my XXXX business did XXXX. 

I turned over a series of documents ( XXXX XXXX  ) per XXXX XXXX request. Note, I have Fair credit and show a drastic loss in income based on prior years. The cost of the house was {$470000.00}. XXXX XXXX instructed me to use $ XXXX for the house , that would cover the down payment ( 20 % ) and pay off debt needed to obtain a loan. Per Appendix B, I was pre-approved for a 50 % loan. 

XXXX XXXX turned over my loan account to his colleague, XXXX XXXX, Loan Partner and an un-licensed lender. Between XX/XX/XXXX to XX/XX/XXXX, I submitted all documentation XXXX XXXX and her associates requested. 

Twice during this process, I requested a loan statement and breakdown of costs, XX/XX/XXXX ( Appendix C ) and XX/XX/XXXX ( Appendix H ). XXXX XXXX did not send over a mortgage breakdown until XX/XX/XXXX ( Appendix I ) and then tried to say he had sent this over earlier in the process. When my realtor and I pressed him to resend the original email we got no response. 

On Friday XX/XX/XXXX I pointed out to XXXX XXXX that I had to send in my down payment per the Title Companys guidelines. He told me to send in {$260000.00} based on his ballpark estimate. I still had not seen a mortgage breakdown at this point and did not send the money. 

On Tuesday, XX/XX/XXXX, the day before closing, I had a call with XXXX XXXX at approximately XXXX. During this brief call he stated that all was in order and there were a couple of loose ends that needed to be tied up but nothing to compromise the closing on XX/XX/XXXX. At XXXX I received a call from XXXX XXXX XXXX that the mortgage did not go through, and they were concerned that my mortgage lender was not being up front with me about the situation. 

On Closing Day, Wednesday XX/XX/XXXX XXXX XXXX did not respond to any emails or texts until XXXX that day. 

After the failed closing I reached out to two venerated mortgage brokers who told me they would have never approved me for a loan based on the information I had provided XXXX XXXX and that XXXX XXXX practices and requests were out of scope. They both recommended I report XXXX XXXX. 

In the meantime, on Friday, XX/XX/XXXX, XXXX XXXX came back with a list of conditions and information I needed to supply. My realtor, two other mortgage lenders and a real estate lawyer advised me that these conditions were really out of scope and that XXXX XXXX was looking for a way to get out of this mortgage. At that point I pushed back on XXXX XXXX and questioned his ethics at which point he ended our business relationship. 

In turn, I have lost a {$23000.00} deposit that I would like XXXX XXXX or NFM Lending to re-pay that I lost when this mortgage wasnt approved, and the sale of the house did not go through. 
In the meantime, it was brought to my attention that XXXX XXXX has tried to slander my name by saying I refused to hand over documentation throughout the entire process and that I would not cooperate with his team. Below is all the documentation and emails between us. Not once during the process did, he say that there was an issue. There are multiple emails and texts where he says things are on track and all is good. 


Notable Issues : XXXX XXXX did not hand over standard documentation ( i.e., a mortgage statement ) when requested. 
XXXX XXXX was unclear of the documentation I had submitted, what needed to be submitted and gave me conflicting advice. 
An unlicensed broker was handling my account with no accountability XXXX XXXX was telling my realtor, the seller, XXXX XXXX and me that everything was on track over the course of 5 weeks when it wasnt Refused to communicate Has tried to slander my name In the following pages, I have provided a Timeline of Events and supporting Appendices. I hope that this claim will be reviewed thoroughly. 

As a small business owner who was hit hard by Covid this was a real blow. If XXXX XXXX had just been up front that I didnt qualify for a loan it would have saved me and many other people a lot of time and money. 

Sincerely, XXXX XXXX XXXX : XXXX XXXX, NFM Lending XXXX XXXX, NFM Lending XXXX XXXX, NFM Lending Timeline of Events ( Note, these are just highlights or important milestones and all are within calendar year XXXX ) XX/XX/XXXX XXXX XXXX and I connect via my realtor XXXX XXXX and make an appointment for an initial discussion about a mortgage. 

XX/XX/XXXX XXXX XXXX XXXX, co-worker of XXXX XXXX requests the following documents. See notes below with my responses in blue. 

For a copy of the actual email refer to Appendix A. 
o W-2s/1099s from XXXX and XXXX ( if applicable ) - I have a 1099 from my only client, would you like that? It is also outlined in my taxes o Personal Tax Returns from XXXX and XXXX - these are combined, my XXXX are still getting filed. Do you want a P & L from XXXX? 
o Business Tax Returns from XXXX and XXXX ( if applicable ) o Thirty days most current pay stubs ( if applicable )- do you want my pay stubs or for my entire team? I take a draw from the business?

o Two months most current bank statements for all bank accounts, both personal and business - see attached XX/XX/XXXX I am approved for a loan and XXXX XXXX outlines the terms ( down payment and paying off debt ) ( Appendix B ) XX/XX/XXXX I request XXXX XXXX to walk me through the breakdown of the mortgage and related documentation, which I never received, and he never followed up with about my request. ( Appendix C ) XX/XX/XXXX XXXX : XXXX XXXX requests Borrowers Authorization Print, hand sign, scan or take a quality photo of both pages and return. 
Explanation Letter Provide an explanation for every item in the spaces provided. Mark the appropriate boxes on the right-hand side. Hand sign and return. 
3 months most recent business bank statements. 
2 months most recent personal bank statements. 
XXXX Profit and Loss Statement XX/XX/XXXXYear to Date Profit and Loss Statement XX/XX/XXXX XXXX XXXX sends rules of the road to me. I respond letting him know that I have submitted everything requested and if there is anything else to let me know. ( Appendix D ) XX/XX/XXXX XXXX XXXX confirms all documents have been received ( Appendix XXXX ) XX/XX/XXXX XXXX XXXX XXXX requests additional information : IRS Record of Accounts XXXX XXXX I sent on XXXX and XXXX Copy of Drivers License or Passport I sent on XXXX Hand Signed Profit and Loss Statements from XXXX and XXXX - I sent on XXXX XXXX and XXXX 1099s I sent on XXXX Gift Letter see thread below XX/XX/XXXX Source of Large Deposits I sent on XXXX Homeowners Insurance Quote I sent on XXXX Chase Account info ending in XXXX I sent on XXXX No Return Transcript XXXX - I sent on XX/XX/XXXX Consumer Explanation Letter I sent on XXXX XX/XX/XXXX XXXX My parents were asked to fill out a gift letter with related wire transfer information ( Appendix F ) XXXX XXXX erroneously requested my parents XXXX sign the Gift Letter ; however, my parents lawyer and XXXX XXXX corrected her and said the Trust owner needed to sign this XXXX XXXX then asked for a copy of their Trust document. My parents lawyer pushed back and said this was not in scope at which point XXXX XXXX jumped in and corrected XXXX XXXX that the existing documentation was suitable as their names were on the Trust. To note, my parents were not comfortable sending over a private document and their lawyer said this has no bearing on the gift. 
XXXX XXXX sent me a text confirming that he had pulled the guidelines and could get around this since their names were on the Trust. 

XX/XX/XXXX : XXXX XXXX requested : ( my answers in blue ) What is the date that you began XXXX XXXX XXXX please? XX/XX/XXXX, incorporated though XX/XX/XXXX Is XXXX XXXX XXXX XXXX Still in business? Follow up documents may be requested. Yes, it is just a passthrough for my horse activities The lead processor, XXXX, sent you a corrected IRS 4506C to e-sign several days ago. Please sign and return. Let be know if you need it sent again - Can you resend? I never received it Please provide the proof of your XXXX tax extension : - Form 4868 - " Application for Automatic Extension of Time To File U.S. Individual Income Tax Return - requested and you were copied on the email Most recent statement from XXXX Revolving account - see attached Most recent statement from XXXX XXXX XXXX account - see attached XXXX XXXX  XXXX XXXX and XXXX requested and you were copied on the email The XXXX XXXX XXXX XXXX and XXXX - - requested and you were copied on the email Please have XXXX XXXX XXXX sign the Gift Letter. - I will send this to him ( note, after this email it was realized that XXXX XXXX was requesting the wrong person to sign this letter ) Appendix G for further details. 
XX/XX/XXXX I sent an email to XXXX XXXX with final documentation from XX/XX/XXXX email and asked her if there was anything else she needed regarding this set of information. I did not hear back from her. 
See Appendix G for copy of email XX/XX/XXXX XXXX XXXX requested ( my answers in blue ) : XXXX and XXXX P & L for XXXX XXXX XXXX XXXX, both hand signed. - this was formed in XX/XX/XXXX NOTE : Wet Signed P & L was sent on XX/XX/XXXX Does XXXX XXXX have a physical address and phone number? Provide if it does, if not, just let me know. No What was the date that you created XXXX XXXX? XX/XX/XXXX If you have a bank account specifically for XXXX XXXX XXXX, please provide the most recent 3 full months worth. See attached. Sent on XX/XX/XXXX XX/XX/XXXX XXXX : XXXX XXXX asks clarifying questions regarding XXXX XXXX XXXX that had already been answered. He also requests a wet signed P & L for XXXX which I provided on XX/XX/XXXX ******AFTER THIS DATE I DID NOT HEAR ANYTHING MORE FROM ANY MEMBER OF THE NFM LENDING TEAM ( XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX ), REQUESTING INFORMATION OR NEXT STEPS****** Monday, XX/XX/XXXX XXXX XXXX and I spoke that day and he told me everything was in order to close and that I would be receiving loan and closing documentation later in the day. 
Note : I never received this documentation Tuesday, XX/XX/XXXX - XXXX am - I send an email to XXXX XXXX asking where we are with the mortgage details, asking for documentation and to talk based on an email I received from XXXX  XXXX, the title company. 
XXXX XXXX  I get an email response back that we should talk the next day, Thursday XX/XX/XXXX. 

Note : XXXX XXXX never called me ( Appendix H ) Thursday, XX/XX/XXXX ( XXXX ) - I text XXXX XXXX XXXX if we are good to go. I do not hear back until Friday ay XXXX ( Appendix H ) Friday XX/XX/XXXX XXXX XXXX tells me I can wire money and gives me a ballpark number, still with no corroborating documentation. At that point I said we should wait until there is documentation. 
( Appendix H ) Sunday XX/XX/XXXX My realtor XXXX XXXX has been on vacation in XXXX since XX/XX/XXXX. I call and alert him to the fact that I still have no documentation and am getting concerned. XXXX calls, texts and emails XXXX XXXX asking where we are with things. He does not hear back. 
Monday, XX/XX/XXXX XXXX and XXXX talk after countless messages left. XXXX XXXX says he sent me the loan statement. He would not return my calls that morning. 
XXXX - I received the loan statement at XXXX. In that email XXXX XXXX tries to say he has sent this statement to me before but can not furnish the original email to me or my realtor. 

( Appendix I ) XXXX XXXX XXXX and I speak and go through the loan statement. Everything is in order, and he tells me we are locked and loaded to close on Wednesday, XX/XX/XXXX. He directed me at that point to wire the down payment and money I was going to use to pay off my car with. 
XXXX I wire {$240000.00} to First XXXX XXXX XXXX XXXX XXXX ( Appendix I ) XXXX XXXX XXXX emails me asking a question about an XXXX loan on my XXXX P & L Tuesday, XX/XX/XXXX XXXX and XXXX - I respond to XXXX ask to speak with her about the XXXX question. I dont hear back. 
XXXX ( approximate ) - I call XXXX XXXX about the XXXX question. He says he will handle it and that the closing is still on. 
XXXX ( approximate ) - XXXX XXXX XXXX from XXXX XXXX XXXX calls me and tells me that we are not closing on the XXXX, she then emails XXXX and asks to speak with him. He does not respond, and she tries again on the XXXX to contact him ( Appendix J ) XXXX I send XXXX XXXX and my realtor XXXX XXXX a text message about my call from XXXX XXXX XXXX I also direct him to check his email for an email from XXXX XXXX as she has been trying to connect with him since Monday and has not heard back. 
XXXX XXXX XXXX had me write a letter regarding the nature of the XXXX Loan XXXX I do not have an update, so I text again. XXXX XXXX tells me to sit tight per a text message, that is the last I heard from him until an email on XX/XX/XXXX, from XXXX XXXX. ( Appendix J ) Wednesday XX/XX/XXXX Closing Day I hear nothing from XXXX XXXX or anyone from NFM Lending. This is all the communication that took place. 
See Appendix J text from XXXX XXXX confirming she has not heard from XXXX XXXX either XXXX XXXX XXXX XXXX from XXXX XXXX ( seller ) sends an email to XXXX XXXX asking for an update XXXX pm XXXX XXXX responds XXXX XXXX XXXX from XXXX XXXX XXXX XX/XX/XXXX I receive an email from XXXX XXXX with 13 conditions of documentation I need to provide Note, I had already supplied 3, 8, 9, 10 and 12 back in XXXX In this request XXXX XXXX asks me to remove a line item out of my P & L My CPA furnished a letter that they would never write a letter like this for a client, it I push back on Points 1 and 2 as we had already agreed these were off the table and XXXX XXXX ends our business relationship. 


XX/XX/XXXX XXXX I reach out to two venerated mortgage lenders who both tell me based on the documentation I provided XXXX XXXX they would have never approved me and that I should report this to the XXXX and Virginia SCC

Company response to consumer: Closed with explanation