Consumer complaint received 2016-01-11
Company: RESIDENTIAL HOME FUNDING CORP.
State: NY
Product: Mortgage
Sub-product: FHA mortgage
Issue: Credit decision / Underwriting

Complaint:
I began working with a Mortgage Banker by the name of XXXX XXXX on or around XX/XX/XXXX. At that time, I was given a preapproval for a multifamily residence for on or around XXXX. The seller of the multifamily did not accept my offer so I did n't move forward. I started working again with XXXX in XX/XX/XXXX ; he referred me to a credit restoration company called XXXX XXXX to help raise my FICO score. While my I was working on my credit, RHF pulled a hard inquiry on my credit report for a new preapproval for a single family residence that I was interested in. After signing a contract on a single family residence/property in XX/XX/XXXX ; I originated a mortgage application with Residential Home Funding XX/XX/XXXX. Thereafter, I was very very unhappy with the mortgage process. I was given a checklist of items that I needed to submit for underwriting verbally over the phone, text message or by email. Those conditions included paying for an inspection and appraisal of the property. After doing so and satisfying the conditions of the mortgage, I was asked for additional information and /or documents over and over again. This ridiculousness repeatedly occurred which pushed back the closing date several times and required me to pay for another appraisal and inspection. It also so happened that during this time there were additional hard inquiries pulled on my credit report without my consent. After six months of back and forth with XXXX XXXX and Residential Home Funding, trying to meet every condition that they will pop up, I was denied the loan despite the fact they had given me a good faith estimate and commitment letter. It was nightmare and to make matters worse, I was out of pocket over {$2600.00}. My attorney advised me that I could also incur additional fees for the cancellation of the title and surveying. 
The reason why I 'm so angry is because I feel the company did a bait and switch which is the reason for the process taking over six months. I also believe the company did not do their due diligence, which cost me time, money and stress. 
If they were denying me based on my DTI or other factors, that is something that they should have disclosed to me much earlier in the process. 
After the loan denial, I was never issued a letter of denial by mail explaining why I was denied the loan. 
I even escalated my frustrations to upper management in Residential Home Funding 's XXXX XXXX, NY office. I spoke to a XXXX, who said that I could not be approved for the original loan amount of {$200000.00} but the Head of Underwriting XXXX was comfortable with approving me for {$180000.00}. I asked him for a preapproval letter on XXXX/XXXX/XXXX, he said that he will send it to me shortly which never happened. 
I feel this company ripped me off, and never was transparent as far as their lending practices which I believe is a violation of Truth in Lending regulations. 
After being so outraged, I looked online at the company 's reviews and alot of ripoff reports describes the same experience that I had. Many consumers had an issue with follow ups, callbacks, dishonesty and other irreputable actions. 
I am mortified at how this company treated me and feel that they were completely misleading.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with monetary relief