Consumer complaint received 2022-06-16
Company: LD Holdings Group, LLC
State: VA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
In XX/XX/2022, Loan Depot ( LD ) employee XXXX XXXX ( XXXX ) XXXX contacted me about refinancing one of three properties on which we have mortgages -- a FL property. I had contacted LD before to consider a refinancing, but the proposal was not optimal and I ended my inquiry. 

XXXX XXXX persisted in contacting me and proposed a deal in which LD would refinance the mortgage on the FL property, increasing the annual rate by 1 % ( 5.5 % ) and the total by about $ XXXX, and using the the additional loaned principal to pay off the $ XXXX mortgage on our VA property, the $ XXXX residue of a car loan, and deliver about $ XXXX. He knew that we had also just purchased a MD property, and the purpose of the financing would be to lower the monthly cash outflow to two properties ( FL and MD ) and no car loan. 

LD ran my credit report and proceeded to request documentation, which I provided. On XX/XX/2022, just having sent all of the documents in concerning the FL and VA properties, LD demanded documents on the MD property. At that point, I had considered the benefits of the possible loan to be offset by the costs, so on XX/XX/2022, I informed LD that I no longer wanted the loan application processed. On XX/XX/2022, I confirmed by text message that I not want the loan application process to proceed. Despite my request, I received numerous telephone calls and emails that ignored my request and continued insisting on the MD documentation. I did not respond to these communications. 

On or about XX/XX/2022, LD sent us a " Statement of Credit Denial, Termination or Change, '' an Adverse Action, which stated that the " Application '' had been denied ( " Statement '' ). According to the Statement, it had been unable to verify income, and based its " credit decision '' that purportedly showed 39 ( Serious delinquency ), 33 ( Proportion of loan balances to loan amounts too high ), 18 ( Number of accounts with delinquency ), and 08 ( too many inquiries within the last 12 months. ) My credit rating had been in the 840s. 

On or about XX/XX/2022, I contacted LD and asked why a purported " credit decision '' had been made before I had even completed an application. I suspect that this purported decision was intended to " punish '' me for not completing the loan process with LD. The LD representative asked for my story to construct a time line, after which he contacted me and told me that LD 's " processing '' is such that I received a " rejection. '' It seems to me that the purported " continuation '' of the application process, if it occurred, was intended to enable LD to make an adverse loan " decision. '' LD 's " credit decision '' was and is deceptive because, among other things : ( 1 ) it was unnecessary : I had not completed and explicitly ended the loan application process weeks before the " decision '' was made, which LD knew ; making such a decision a hollow formality obviously designed to hurt our credit ; ( 2 ) statements of delinquency are false and, I believe, fraudulent, as they create an adverse record unfounded in fact ; ( 3 ) any " reasons '' for the adverse credit decision were known to LD before I had even begun providing documentation -- which merely provided evidence to support my statements to XXXX -- and yet the loan process continued -- even after I asked that it end and despite their irrelevance on the front end become the " predicates '' of the " adverse decision '' on the back end ; and ( 4 ) the explanation for the adverse credit decision was untruthful, as any " decision '' -- even if necessary -- would have to have been based on an incomplete application. 

Thank you.

Company response to consumer: Closed with explanation