Consumer complaint received 2020-05-12
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — 
Company: BROKER SOLUTIONS, INC. (CA)

We were to close our escrow on XX/XX/XXXX. We signed a Closing Disclosure on XX/XX/XXXX and were ready to fund. The seller has signed his paperwork. All that was left was a re-write of the appraisal due to the appraiser using the wrong form ( manufactured home form and comps instead of stick built form and comps ). The bank, realtors, seller, and the appraisal office were all on the same page with the re-write of the appraisal to close. And the appraisal office understanding the error and getting it fixed, quickly to help provide stick built comps and help close escrow on XX/XX/XXXX. 

Then on Saturday XX/XX/XXXX at around XXXX hours, the bank called to say that the banks appraiser called the appraiser who advised the house is a manufactured home and is no longer going to re-write the appraisal. The bank then stated that they will now need a building permit to show it was changed to a stick built. 

Back story : the house was put in as a manufactured home in XXXX 's. In XXXX the owner had it converted to a stick built. County tax records show from XXXX to XXXX that the home was taxed as a stick built. Then a county error occurred in XXXX with a mysterious addition of " MH '' to the property description on the county record with no physical change to the property ; a clerical error. In XX/XX/XXXX, the seller agent and seller noticed this clerical error and went to the county to get it fixed. The county confirmed the error to be a clerical error and sent the paperwork to be fixed in another county department. Note : This county clerical error ; the " MH '' addition to the property description, was disclosed to the lending bank prior to us XXXX the buyer ) even filling out paperwork with this bank for the this loan. Also, prior to going to this bank, we ( the buyers ) paid for an inspection report. That report and the inspector adamantly state this home is a stick built home. Yes, at one point it was a manufactured home, but it has since been converted to stick built. The inspector took over 30 photos of the crawl space to prove this. 

On Monday XX/XX/XXXX the bank, still wanting to take on this loan, called the county who confirmed the tax records as stick built, and the clerical error of " MH '' being added to the property description and it being in the process of being fixed. The bank let me know about this conversation and said that the bank wants a county inspector to inspect the house to confirm what the county said over the phone to the bank. I let the bank know that we had an inspection report recently conducted ( as noted above ) and could that help. The bank said yes. We reached out to the inspector who then produced several more photos and was willing to talk to, write to, or meet up to whomever he needed to explain that this house is a stick built home. 

Today, the bank let me and my realtor know that the photos, inspector, and the county clerical error would no longer be enough. The bank 's chief appraiser and the chief valuation officer have now reviewed all the information, spoke with the appraiser who provided us with the appraisal report and advised that in order to proceed the bank will now need permits showing the manufactured home was removed and the stick built home that currently exists was permitted to be built. The bank concluded the email with, " We can't proceed with this loan because even if we switched property type the age of the manufactured home is XXXX per the appraiser. '' The involved realtors are currently working to figure out how to get a building permit, however while I have appreciated the bank 's communication and even wrote our bank mortgage consultant a letter of appreciation due to all the work she has done to help us close this escrow, we are starting to wonder if going through these hoops will ever be enough? 

We have signed the CD. The bank is now calling this a manufactured home even though there is countless documents to prove it is a stick built home. And now it sounds like they are not going to fund. The appraiser is refusing to change the appraisal from MH to stick built, again when there has been plenty of documentation to prove it a stick built home. The county document that the bank has referred to as having " MH '' on it and the bank having to proceed with that has, in the last hour today, been removed from the county document. And the inspector is no longer a document the bank is willing to accept even though he can validate and verify this to be a stick built home. 

The decision from the bank today was made on no new information about the house. And I'll re-state from above that the clerical error from the county record was disclosed to the lending bank prior to us ( the buyers ) application for this loan.