Consumer complaint received 2015-09-22
Company: Prospect Mortgage, LLC
State: TX
Product: Mortgage
Sub-product: Conventional adjustable mortgage (ARM)
Issue: Application, originator, mortgage broker

Complaint:
Prospect Mortgage was the mortgage company that we worked with to close on our new construction home. Throughout the build process my wife and I worked extensively with Prospect Mortgage and the home builder to expedite paperwork, timelines, and decisions so that there were no issues with the timeline. We were to close on the property XXXX XXXX, all parties ( Builder, Prospect Mortgage, wife and myself ) knew this date well in advance to that day. Around XXXX XXXX, Prospect Mortgage contacted us and stated that we would not be able to close on XXXX XXXX because the XXXX party Appraisal company that THEY hired ( and which we never had any contact with ), the appraiser made an error on the appraisal. At this time we provide this information to the builder and they stated as long as we closed before XXXX XXXX, we would not have to pay a late close fee. Prospect Mortgage, the builder, and my wife and I signed a contract to close on the property XXXX XXXX. During this period between XXXX XXXX - XXXX XXXX, we stayed in constant contact with the builder and Prospect Mortgage, due to state law we had no access to the Appraisal company. The Appraiser made multiple errors on the appraisal document, and also took vacation during the time we needed the finalized appraisal for us to close before XXXX XXXX. This delayed us into XXXX, and we were told by the builder that we had to pay a 1 % fee of the property, due to closing late. 
At this time the communication from Prospect Mortgage was that we were to take the appraiser or the appraisal company to court and have him legally pay the fees because it was their sole issues that caused my wife and I to close late. Within XXXX, Prospect Mortgage also had multiple people away from the office for various reasons and delayed our close even further. After we close and received the keys to the property, we contacted the appraiser. His statement was the following, " I am not at liberty to speak to you as you are not the client, please speak further to the client regarding your issue ''. We relayed this information to Prospect Mortgage and were then transferred to a person in the Compliance Resolution department. After we provided all the information to the this person over the course of a few days, their final statement was.. 
They represented the appraisal company and any and all communication regarding the appraisal company must be completed through Prospect Mortgage. If they felt that the appraisal company was wrong in any situation, that Prospect Mortgage would take full responsibility. Also that Prospect Mortgage is unable to provide us with any funds after the close because it was illegal, and that the party for us to battle with would be the builder, as they did not ask for the funds at closing. 
At this time, the builder is stating that they are able to put a lien on our property since it is stated within the contract that we my wife and I were not to close on time that we were to pay a 1 % fee. 
My wife and I want to file a compliant, as we worked extensively with all parties to complete all of our paperwork and deadlines well before the due dates. Prospect Mortgage who represents the XXXX party Appraisal company advised us that we were to take action again the appraisal company after the close, then after the close stated that we were on our own and that we should battle with the builder regarding the fee. Not only did they fail in completing to meet the deadline for the close, this occurred multiple times and caused plenty of stress between my wife and I. Now I am in a contract battle with the builder, that Prospect Mortgage has caused, and Prospect Mortgage conveniently stated its not their issue and stepped to the side for us to handle it on our own.

Company response to consumer: Closed with explanation