Consumer complaint received 2016-06-06
Company: Minnesota Home Financial, LLC
State: MN
Product: Mortgage
Sub-product: FHA mortgage
Issue: Application, originator, mortgage broker

Complaint:
We worked with our local lender to get preapproved for a $ XXXX FHA mortgage loan in XX/XX/XXXX. We were told at that time that our preapproval was not dependent on selling our current property ( another FHA loan ). After finding a property and our offer being accepted, our local lender started working with XXXX XXXX based out of XXXX, CA to close our loan. Our closing on the new property was set to occur 3 weeks prior to the closing of our existing property. 
It was about 4 weeks into the 6 week closing process that we noticed issues with our loan. We were being asked to gather information on previous employers ( including forwarded verification of employment papers that should never have been in our hands ), go to the IRS office ourselves for tax transcripts, told after the set closing date that our current FHA loan needed to be paid down when we were told originally that this new loan was not dependent on selling our previous property, etc. All of which is not appropriate. 
It became clear about a week prior to our close date ( XXXX XXXX ) that our loan would not close on time. Even though that was the thought, there was no guarantee it would n't close on time thus we were given the run around for that entire week, asked to scramble to get certain documents to our lender and in turn to XXXX XXXX in order to close on time and our sellers were not told until the day prior to the scheduled closing that it would not close on time. Our failed closing date held up XXXX other sales with our sellers and the sellers of their new property. 
After the missed closing date, it became a complete nightmare. XXXX would sit on our submitted documentation for 3-4 days at a time when they claim they will look at it within 24 hours of receiving it. We were told our file/loan had highest priority since we already missed our closing date but " high priority '' to XXXX meant nothing as our paperwork continued to sit on someone 's desk. 
We were finally able close our loan 3 weeks late. Even with that happening, we were not given the guarantee that it will close until the morning of and were not aware of our payment to close the loan until noon that day with closing at XXXX. Completely unacceptable and negligent on their part and our lender 's part. The 3 weeks between the initial closing date and the real closing date consisted of daily emails from our lender and XXXX stating they had " one more thing '' that was needed from us and then we could close. That " one more thing '' sat on their desks for days and then they came back and found " another one more thing '' for us to scramble to get. It was a very unorganized process and documentation that was being requested this late in the process could have easily been submitted weeks prior without needing to scramble. 
I do not believe that XXXX XXXX was doing as much with our loan as he could have. He acted " powerless '' through much of the process, indicating that it 's in XXXX 's hands and their timeline. This is not acceptable to us as we are paying him as a professional to get our loan closed and on time. XXXX kept telling us it is not unusual to have a close date get pushed back but we have heard otherwise from many other professionals in this area including our realtor and the seller 's realtor. We even told XXXX to stop working on our loan at XXXX point as we decided to work with our seller 's lender and XXXX continued to work on it. Not sure of the legal and ethical ramifications of having XXXX lenders working on the same loan at the same time. 
We also submitted a complaint against XXXX XXXX as they were part of this process and held up our closing with sitting on paperwork. But XXXX also needs to be held accountable as he was our local " go to expert '' who we felt let us down and preferred to put the blame on XXXX versus some of it on himself and his company.

Company response to consumer: Closed with explanation