Consumer complaint received 2024-08-30
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — Closing disclosure or other related disclosures
Company: Northrim Capital Investments Co. (OR)

I requested a refund of the appraisal fee that I was charged during a recent mortgage application process with Residential Mortgage Services. I believe the fee was unjustly charged due to the mishandling of my loan application and the failure to provide the required documentation and information, as outlined below. XXXX XXXX was my lender and XXXX XXXX is the manager for the branch. Ive been upfront from the beginning on my employment contracts, and stating that Im an employee contracted to work during the school year. I had a pre approval already from XXXX XXXX  but went with residential mortgage because of a grant program offered. After residential mortgage failed, to finance me I now own the home through a XXXX XXXX loan. Isnt that ironic. 
Background : The appraisal fee of {$700.00} was requested and paid on XX/XX/2024, under the assumption that all preliminary underwriting checks had been completed and that the loan was likely to proceed. However, it was not until XX/XX/XXXXXXXX XXXX days after the appraisal fee was paidthat Residential Mortgage asked for my school contracts and discovered that my employment is for 9 months out of the year, which ultimately led to the loan being denied. 

Residential Mortgage failed to conduct proper due diligence before requesting the appraisal fee. Information regarding my employment contract should have been reviewed prior to ordering the appraisal. If this critical information had been considered earlier, it would have been clear that the loan could not be approved under their criteria, and the appraisal fee would not have been necessary. 
Issues : XXXX. Mishandling of Loan Application : Despite my upfront disclosure regarding my employment status, Residential Mortgage Services proceeded with ordering the appraisal immediately after receiving my school contracts, which confirmed my nine-month work schedule. Instead of pausing the appraisal order to reassess the situation, Residential Mortgage Services moved forward, leading to a situation where I was later informed that my loan could not be approved. 
XXXX. Lack of Formal Denial : The only communication I received from XXXX XXXX was an email stating, Per underwriting, we arent going to be able to approve this loan. I never received an official denial letter, which I believe is required by law under the Equal Credit Opportunity Act ( ECOA ). This act requires lenders to provide a list of the main reasons for denying a loan or inform the applicant of their right to request this information. When I asked for a denial letter, I was not provided with an official one. 
XXXX. Misleading Guidance : After receiving the vague denial statement from XXXX XXXX, I was advised to pay down debt and try again next year. Had I followed this guidance, I would have lost the opportunity to purchase the home I now own, thanks to securing financing with another lender. This further demonstrates the flawed handling of my application by Residential Mortgage Services. 
Request : Given these circumstances, I request a full refund of the appraisal fee. I believe it is only fair, considering the appraisal was ordered prematurely and without proper consideration of the underwriting issues that were present at the time.