Consumer complaint received 2017-03-07
Company: Chrysalis Holdings LLC
State: MD
Product: Mortgage
Sub-product: VA mortgage
Issue: Credit decision / Underwriting

Complaint:
We have a perfect mortgage-payment history, going back to the spring of  XXXX , credit scores in about the  XXXX  to  XXXX  range, a fully  discharged Ch apter  XXXX  bankruptcy, and NO DEBT, beyond the mortgage, except fo r one secured Visa card t hat I got last year to re-establish credit so that our overall score would be higher when we applied for this refinance. It has a low balance. NewDay USA has gone well beyond what is required in documentation for a VA refinance. Even though the credit report tells the story, it wanted 36 months of mortgage statements or canceled checks to prove that the mortgage was paid on time. It demanded bankruptcy paperwork well before the discharge, which was signed by the judge! It wanted the plan 's payment history and numerous other documents. Just before closing, it denied the refinance, saying that there was a break in payments to the  U.S.  Trustee. I was very transparent on this, explaining that because of  XXXX  discrimination, retaliation, hostile work environment, harassment, and being forced to work outside my medical restrictions at my federal government employment, I was forced on leave without pay to tend to the numerous medical issues that my employer had caused AND exacerbated. We continued to pay the mortgage on time, and once my  XXXX  retirement was approved from the  U.S. Office of Personnel Management, we set up a modified-payment plan, which we completed EARLY! We   received our discharge in  XXXX   XXXX . NewDay is CLEARLY overreaching when it reaches over a federa l BK judge in   XXXX , MD and makes up its own rules so that we are denied the proverbial, " fresh start '' that the statute provides when the payment plan is complete and the judge signs off on it and issues the discharge. We spent more than a month giving them every single piece of paper that they requested. They wanted to know what happened that got us into bankruptcy. That seems like a reaching question. We had a problem, and we solved the problem by paying what the judge ordered. We need to look at the facts, not satisfy the curiosity of someone, who is just nosy and finds the challenges and unfortunate experiences of others to be entertaining or laughable. This is a TERRIBLE way to treat a  XXXX   Veteran  &amp; his young family! Where is the deference and financial freedom they market about? This is also likely to be retaliation for not taking the higher rate and cash out of the house. They do n't like it ( seemed surprised ) if you are n't going to take cash out. The quote wa s 5.25 for the note with cash out -- 4.25 without. They make a killing off that one percent! We had an active VA  appraisal good through    XXXX   XXXX   XXXX  , and NewDay  would not credit back us the {$480.00} we paid  XXXX   XXXX  to buy that service. They advertise that the {$500.00} appraisal fee is paid by the company. So, why not credit it back to the borrower, if they already have it? But, they are n't reasonable people, and they do n't make reasonable decisions. I delivered many pages of documents the very next day -- in person. Then, the " account  XXXX  xecutive '' is told that they ca n't be hand-delivered, they have to be delivered with a tracking mechanism. Well, if you have the documents in hand, why the need for proof of how they got there? I had indeed read about the {&gt;= $1 ,000,000} fine they paid to the CFPB not too long ago. That had to do with inappropriate behavior in advertising, so I thought I 'd give them a chance. If you, the co-borrower, or both are  XXXX  and are applying for the purchase or refinance using  XXXX -retirement income, have a  Chapter   XXXX  bankruptcy ( even fully paid and  discharged  ) and are not taking cash out of your equity in the house for purchase or refinance, then I suggest you avoid using NewDay to meet your financial goals. This company  will drive you a bsolutely nuts with its repetitive, relentless, and sometimes needless documentation requests.

Company response to consumer: Closed with explanation