Consumer complaint received 2024-08-27
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Applying for a mortgage or refinancing an existing mortgage — Delays in the application process
Company: LD Holdings Group, LLC (NC)

I reached out to Loan depot on or about XX/XX/XXXX. I wanted to start a cash-out refinance with them. I had my previous refinance with them and they say that if you have completed a loan with them, then they waive all lender fees for future home refinances. " No more fees for life We want to be your lender now and for all your future transactions. With loanDepot 's XXXX XXXXXXXX, we'll waive our lender fees on all your future home refinances. '' I spoke with XXXX XXXX. I explained the situation and he collected all necessary information to initiate the refinance process. I told XXXX that I did not have my XXXX or XXXX taxes completed. He assured me that this would not be a problem ( This turned out to be a lie ). There were multiple calls and emails to make sure I submitted all of the necessary paperwork. He initially told me that we could do the loan with just my income and XXXX XXXX. This was the first in a long series of untruths and false promises. He later said that my debt to income ratio was not good enough to make the deal work, even though there is over {$170000.00} worth of equity in the house and the reason for the refinance is debt relief. In addition, my total debt is under {$50000.00}. He then said that with my wife added to the loan, we could easily make the loan happen, based on her income being added. XXXX said the whole process should take between 30-45 days. Over the next month my wife and I provided every document that was requested. Every time we provided the documents listed in the 'Document Portal ', they would come back and add additional requirements. When I would ask XXXX about it, he would apologize and assure me that this was the last document. However, that proved to be a lie. This happened more than 10 times. 

By XX/XX/XXXX XXXX had misplaced some of the documents I had sent in. He asked me to resubmit them and also he asked me to provide a short letter of explanation as to why my taxes had not been submitted. I provided the requested documents. Next came some supposed 'issues ' with the retirement documents we sent in. The ones we submitted were not acceptable. Apparently they needed documentation about the 'Terms of Withdrawal ' to make sure the retirement funds could be accessed in the case of foreclosure or other non-payment. We submitted many different documents that all outlined the 'Terms of Withdrawal '. We even spoke directly to our retirement company to make sure we were submitting the correct documents. Our retirement company, XXXX, has a lot of experience providing documentation to mortgage companies for the same reason. However, after long periods of time, we were informed by XXXX, XXXX, ( Loan Depot ) that these were not acceptable documents. We asked them if we could do a 3-way call with XXXX to insure the proper paperwork was finally submitted. This request was denied. XXXX said to hold off from doing that right now. 
By the way, I had to pay for the appraisal to be done. This cost was {$580.00}. 
From XX/XX/XXXX until XX/XX/XXXX the majority of correspondence was via the phone ( Loan Depot says they record all calls ). Seeing the incompetence and ineptitude of XXXX and his team, I anticipated the future requirement to complete my taxes. Therefore, I started working on both the XXXX and XXXX taxes. 
During this time all of XXXX 's reassurances fell apart. XXXX by XXXX the items he told me not to worry about, all of a sudden became a problem. Even though they had my wife 's W-2 forms and her tax returns for XXXX and XXXX, they created a false narrative that because my wife worked for my company ( XXXX ), they needed my XXXX taxes. As I said, they had my wife 's legal W-2 from my business. They also added yet another requirement in the 'Document Portal '. They said they needed evidence that XXXX had been dissolved. I explained to them that XXXX has not been dissolved and is currently still in business. By the way, IT IS NOT ILLEGAL for a spouse to work in her husband 's company. They also added another requirement in the 'Document Portal '. It said we needed to increase the Homeowners ' Insurance amount. This was not stated prior to this and even though they already apparently had plans to decline the loan, they had me increase the insurance level, which consequently increased the premium that I now had to pay IMMEDIATELY. ... ... ..... 
What followed was a few calls from a man named XXXX. I did not get his last name. However, he apparently called me from Loan Depot 's phone at first pledging to take care of the case. He said he had never seen so much paperwork collected on a case before. He said he would move the process up the chain and talk with underwriting directly. He said he understood that the discrepancies were minor difficulties and we should be able to get over them with no problem. This correspondence started around XX/XX/XXXX with him telling me each day that he would get back to me by the end of the day. He never did. I always ended up calling him back the next day. Then around XX/XX/XXXX his correspondence shifted to text and calls from his personal number. I am including screenshots to give a sense of the conversations. However, there were more assurances and discussions via phone as well. 

In this first screenshot we see that he has taken the matter to XXXX for them to consider an exception. We also see reference to the fact that during some of our phone conversations he mentioned that if he couldn't get the process done through Loan Depot, he had another guy ( business ) that would do the loan for me. 

In the 2nd and 3rd screenshots we see reference being made to Loan Depot checking with the IRS for the taxes. You will see that I mentioned that I was told only the XXXX taxes needed to be verified. They were verified on the IRS website by this time. Here they go moving the goalpost once again. Now XXXX is talking about the XXXX taxes that need to be verified. Even though EVERYONE and ANYONE who has been paying attention for the last 5 YEARS knows that the IRS is backed up, especially for paper returns. In addition, the XXXX tax returns show XXXX XXXX XXXX XXXX income and taxes. It is not only common sense that the XXXX are filed in a similar manner with all necessary documentation being provided, it is now actual EVIDENCE! Not to mention that Loan Depot has the actual copies of the exact returns sent to the IRS. There is no reason for me to falsify any of the information on the tax returns AND there is no reason for Loan Depot or their underwriters to doubt the authenticity ; nor is there even a necessity to see them! They already have the verified W-2 from my wife 's employment. You will see in the following screenshots where I even provide evidence that the paper returns were mailed off when I said they were. 
We then see that after XX/XX/XXXX there was no correspondence from XXXX. I texted him on XX/XX/XXXX and XXXX with no response. Then on XX/XX/XXXX I find out that yet another loan XXXX has gone on vacation without informing me and without any updates on where the loan stands! Imagine my dismay and distress 4 months into the process with nothing to show for it but empty promises, lost time, lost money, and a significantly decreased credit score, due to the fact that I was looking specifically for debt relief. This fact is made even more painful when the realization hits that, with a diminished credit score, I can not qualify for a loan with any other company. 
After XXXX 's short response on XX/XX/XXXX I did not hear back from anyone until XX/XX/XXXX, when XXXX XXXX reached back out via phone and email. He sent me the same introductory email that he sent when we first started the process, as if we were starting from the beginning. I was upset when I received that email because the language in the email about their commitment is a total fallacy ... ... ... ..As your dedicated licensed lending officer, I am here to serve as your personal point- of-contact, leading you through the entire end-to-end lending process. I realize that you have a choice in lenders, and I take serving you with a high level of commitment, communication and service very seriously ... ... ..... 
I allege that Loan Depot has engaged in discriminatory practices ; misleading information ; defamation of character ; intentional sabotage of my personal reputation and credit rating ; for the purpose of forcing me into foreclosure. In addition, their loan officers ( XXXX XXXX, XXXX XXXX, and XXXX XXXX? ) ) were extremely derelict in their duties and incompetent in their work. Additionally, XXXX XXXX? ) made specific claims and guarantees that my loan would be closed, if not by Loan Depot, than by an outside firm. All of this incompetence and misbehavior has led to a worsening of my credit rating and financial positions due in large part to the unnecessarily long amount of time it took to come to a conclusion. This same conclusion was unfairly reached and had no justification in facts. In actuality, there is evidence ( some provided here ), that contradict their reason for denial. Regardless of intent, the effect of their actions amount to discrimination and violation of Fair Housing practices.