Consumer complaint received 2021-10-27
Company: Celebrity Financial, Inc.
State: TX
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
XX/XX/2021 Dear CFPB : On XX/XX/2021, I purchased the home located at XXXX XXXX XXXX. Unfortunately, the home was purchased under duress. I used Midwest Equity Mortgage as a lender, trusting that Midwest Equity Mortgage would prepare all documents to close. Unfortunately, due to poor handling of documents, calculations, and communications, my family and I suffered monetary damages. My family and I would have been homeless if I did not agree to Midwest Equity Mortgage new unforeseen terms. My wife and I leased our home, because of the pre-approval letter we received. My wife and I were then contacted by Midwest Equity Mortgage with an increase of an additional 5 % earnest money. In the event my wife and I not concurred with the 5 % increase, my family and I would have been homeless. For the reasons stated above and a 12th hour change, please find attached to this letter - The official preapproval letter from Midwest Equity Mortgage, the congratulatory letter, a video portal with conditional approval, and letter of explanation. 
After the LOX ( Letter of Explanation ) was provided, Midwest Equity Mortgage required an additional VOE ( Verification of Employment ) for my wife, XXXX XXXX employment. Although, the VOE confirmed XXXX salary increased, it was required that XXXX and I pay an additional 5 % in down payment, that equaled to 10 %. It was required to pay down two ( 2 ) vehicle loans to less than 10 months for fulfillment, that totaled {$9700.00}, and finally we were required to pay off all credit card debt totaling {$4000.00}. 
I contacted the loan originator, XXXX XXXX. I questioned why the increase in down payment and requirements to pay multiple items, when the only information that changed throughout the course of the deal was an increase in XXXX salary. XXXX XXXX did not know why we had the increase for down payment, and the request to pay off all credit cards. At this point, it was very necessary to continue with the real estate purchase, or as stated above, have nowhere to live. 
Because of my concerns, and the extraordinary time restrains, I was under pressure from the seller to close the deal. I emailed XXXX XXXX SVP - Chief Compliance Officer of Midwest Equity Mortgage, to inform him to look at my file because I felt it was mishandled. After being contacted by XXXX XXXX, the XXXX XXXX for the company, I was informed a thorough review would be done. To my surprise, I was advised that there was nothing that could be done to get the loan requirements back to the original 5 % down approval. I asked why, would you approve the verification of income at {$24.00} an hour, but not honor the verification increase at {$29.00} an hour? 
As a result of the unexpected additional 5 % down and closing costs, we were unable to get the necessities for our new home. The refrigerator in the home was also taken by the seller and we couldnt afford to buy one. The cost of moving increased, because of delays Midwest Equity Mortgage imposed on us for additional information. I had to pay even more to move out before the arrival of the new tenant. My XXXX, scheduled XXXX for XXXX  reasons that were postponed to rebuild our savings for insurance deductibles. The car I was forced to paid down is in extreme disrepair costing {$5000.00} to fix. 
I am requesting an investigation into Midwest Equity Mortgage practices. I ask for a detailed review of my loan file to determine the reasons for the inconsistent messages, for the additional 5 % increase, and the credit card pay offs. Did Midwest Equity Mortgage calculate the income correctly? Why did Midwest Equity Mortgage require I show proof of my tenants deposit? Were there any other options available to us that could have reduced the DTI ( Debt to Income ), other than paying off several cards and an additional automobile? Why did we have to use all our money to paydown both of our cars when we were initially informed only one car would have to be paid down? 
In the event, Midwest Equity Mortgage was negligent or unethical in the underwriting decision and/or discriminatory practices are discovered, I would like for my loan papers to be re-written and back to the original 5 % down. I would like for Midwest Equity Mortgage to update their policies and procedures to prevent further similar issues borrowers may have. I also want the company to be trained in customer service, making sure they give full options to their borrowers. Finally, I would like to be compensated for the severe financial and emotional distress this process has put my entire family through. 

For any questions or concerns, please feel free and reach me at XXXX or by email at XXXX. 

Thank you. 
XXXX XXXX & XXXX

Company response to consumer: Closed with explanation