Consumer complaint received 2020-01-10
Company: LD Holdings Group, LLC
State: NC
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
I went through Loan Depot to refinance my current mortgage and take cash out to pay off other debts ( HELOC, Student Loans and a Car Loan ). Throughout the entire process there were errors that if I hadnt checked, would have cost me or did cost or had my funds withheld needlessly. They also conducted illegal sales practices and had had customer information privacy breaches 1 ) Failure to charge agreed upon closing costs : 3 separate notices sent with closing costs double the agreed amount. Each time the associate tried everything to convince me I was wrong. Used incredibly complicated terms, double negatives, etc. Each time I had to escalate to get correct amount listed.

2 ) Sent to closing/escrow company incorrect pay off amounts for my loans. I was required to obtain new pay offs for loans due to them missing the closing date they first assigned. A total of 7 loans had incorrect pay off amounts. My closing documents only indicated 1 and I called to have it fixed. They said they had time to do it. When I received the final documents from the 3rd party escrow company, 7 out of 8 loans had the wrong pay offs ( excess funds ). I was told it was now my problem and to work with those companys to get my excess of {$2000.00} back. I have still not received around {$300.00} back. Also that check was issued incorrectly to my student loan and I had to call, file a missing payment claim to find the check and have it applied to my account. 

3 ) False Sales Practice- when interviewing companies, my one stipulation was that I wanted to be able to pay off my pre-existing HELOC but leave the line of credit open. I did not want it closed. If that could not happen I would not refinance or I would refinance with the bank my HELOC is with. My loan officer, XXXX XXXXXXXX ( XXXX # XXXX ) said he did the proper due diligence and it could be done. I was told that through closing. When speaking with the 3rd party escrow company that did the pay off, I was told that my account had to be closed. The proper paperwork process needed by XXXX and LoanDepot was never done and I had no choice. When emailing XXXX he said that it was not my problem and to open a new HELOC then. I asked to speak to a manager and received a voicemail from a woman. She did not know the situation, just that I wanted to speak to a manager and if I wanted I could call her back. I did. I got a generic voicemail and never was given a response. I did a written complaint and asking to speak with a senior manager and have yet to receive any kind of interaction in over 4 weeks. Less severely, I said I didnt want to have my homeowners insurance escrowed in because i had paid in full. Was told that was ok. Got to final docs and it was escrowed. Was told I had to have it or my rate would greatly increase and the whole process would start over. I was guaranteed a close within 30 days if I gave all documents on time. I did that. They were double that time and it due to their unforeseen volume. I told XXXX I needed a quick closing and low closing costs. He gave written confirmation and neither of those happened. 

4 ) during the loan application process, I had other peoples information placed in emails and on documents. This included CIP information like full name, address and last 4 of socials. I do not know if they were all for the same person but was told it was just a cut and paste error and not to worry. 

I can provide all email correspondence. 


Due to their problems and errors and inability to access funds from our home equity line, we were not able to put the needed down payment with the builder we had intended. This was the entire purpose of refinancing. We lost the lot we had on hold and now are being delayed 3-5 months until weather improves and they can start a new phase of houses. This delays our plans for selling our current home. We had a temporary housing set up for the summer so we had a place to live after our current house sold while we waiting for our new house to be finished. Now with the delayed schedule, we will not have housing. Their errors and mistakes/refusal to do the necessary work to keep the HELOC open and close in the time frames they agreed to is going to cost us thousands of dollars. They were aware of this and chose to mislead me in order to secure my business. If they were honest with the timelines and that they wouldnt do the necessary work to keep my HELOC open, I would have taken my business elsewhere. Justins excuse was that he didnt know he had to do anything and thought Id still want to do the refinance anyway so didnt tell me. If he had told me, I could have worked with XXXX  XXXX XXXX to get something in place. My timeline and needs were something I new could be tough, but they directly lied and falsely represented their products and processes. If they could not meet my needs, the were responsible to state that. XXXX XXXX deliberately mislead in order to profit. There has been no effort by LoanDepot to resolve any issues. I stated I need to close and have all pay offs completely by XX/XX/2019. I contacted LoanDepot on XX/XX/2019. I was told it was be under 30 days to close and quoted very end of XXXX. We closed on XX/XX/2019 and pay offs did not happen until after XXXX from XXXX. I still am missing {$300.00} from my student loan company due to overpayment and was quoted 30-90 days for them to process.

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