Consumer complaint received 2021-09-01
Company: RoundPoint Mortgage Servicing LLC
State: NJ
Product: Mortgage
Sub-product: FHA mortgage
Issue: Closing on a mortgage

Complaint:
I applied for a loan w XXXX XXXX / Roundpoint Mortgage after being declined for a mortgage by XXXX XXXX that shouldn't have been pre approved, mid sale, trying to make the sale work. XXXX preapproved me at the end of XXXX. 

In mid XXXX, XXXX communicated with me that my FHA loan was not being approved in underwriting due to my father ( co signer ) income on his rental properties. After he and underwriting could not come to a decision between themselves, my mortgage was escalated to the FHA. On XXXX XXXX XXXX advised me both on the phone and in writing via email that the FHA would not insure my mortgage and my loan was denied. He told me he would email me the denial paperwork on XXXX XXXX. 

Despite XXXX saying he would send the denial on XXXX XXXX, instead of sending the denial document, he sent me an email requesting that my father sign a *mortgage application* form even though we had signed it online together the week before and the mortgage was denied. When I emailed that I was not comfortable getting an application form signed after being told I was denied, XXXX responded via written email, threatening that if I did not provide the signed form, my application would be marked as withdrawn and I would not be given denial documents. Despite my instinct that it shouldn't be done, I got the form signed and returned it for fear XXXX would say I withdrew my application which would be breach of contract and make me liable to seller costs and financial loss. 

XXXX continued to repeatedly tell me that he would get me the denial doc at a later time, despite me following up on his provided tike frame. I also have an email from his supervisor on Thurs XXXX XXXX approx XXXX confirming my denial and that a denial document would be provided. 

Fri XXXX XXXX approx XXXX, XXXX emailed out of the blue that my mortgage was magically approved and issued a written commitment, despite there being no appraisal completed on the property. 

This has legally boxed me into the sale on a mortgage that could still fall through if the house does not appraise correctly, despite appraisals being done prior to a commitment. Additionally, neither XXXX or Roundpoint will clearly answer why there was a sudden reversal without communication or what factor caused the reversal at all, which seems extremely sketchy. And I have to follow through with this sketchy seeming mortgage or possibly get sued by the seller for breach of contract. 

I contacted Roundpoint 's customer service XXXX  email multiple time requesting if they could advise if issuing a written commitment w/o appraisal was their standard operating procedure, and if not, why an exception to procedure was deviated on my loan. I have received absolutely no response. 

This is sketchy, predatory, and has no ramifications for the loan company, but I could and have suffered financial loss in this process due to mortgage brokers not following rules, and I stand to live in a stressful state of not getting a mortgage despite having a " commitment. ''

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