Consumer complaint received 2024-08-14
Product: Mortgage — VA mortgage
Issue: Struggling to pay mortgage — Applying for or obtaining a modification, forbearance plan, short sale, or deed-in-lieu
Company: Mortgage Research Center, LLC (AR)

I have attached a formatted PDF version of this complaint.
We have been wronged by our mortgage company Veterans United (XXXX XXXX) in three major ways:

1.) Veterans United mislead us to believe that when our forbearance ended in XXXX XXXX, we would be able to resume monthly payments while the arrears would be added to our loan. However, when the forbearance ended, we were told that we had to either pay the arrears in a lump sum or over a three month payment plan. This was not possible, as we did not have XXXX sitting around, nor could we afford what amounted to triple payments for three months. The only other option we were given was to apply for a loan modification, which we did. They quickly denied that application and told us we could apply one more time.

2.) Veterans United has refused to allow us to make payments during this time, which has led to the arrears adding up to over XXXX Not only were we told repeatedly by phone that they would not accept payments until the arrears were paid, they also disabled the online payment function on our account.

3.) Veterans United has not taken our loan modification application seriously. We submitted our second application in XXXX XXXX. Yet, they have used every stalling tactic possible to avoid accepting the application. They have managed to drag the process out for over nine months, even though we have submitted every document theyve requested. Since the application (and most supporting documents) expires after three months, we had to resubmit the application and all supporting documents in XXXX XXXX and again in XXXX XXXX We believe they are doing this intentionally in order to force us into foreclosure. If we are forced to submit another application, we will be using an attorney to manage the process this time to ensure our application is handled properly and our rights are respected. It is shameful that we are being forced to spend XXXX  of dollars on legal services, when that money could be going toward our mortgage. 

The pattern has become very predictable. Throughout this process, I have been tracking the status of our application online. When I submit documents, the status will show under review until someone looks at the documents and moves them to approved or rejected status. Often, documents that have previously been approved will be suddenly changed to rejected. The reasons listed on the website are always unclear, so I have to call for clarification. On average, I have been calling about twice per week and have spoken to countless agents throughout this process. I take detailed notes on each call and also have recordings of most calls. They keep telling me they just need one more thing to complete/clarify the application, then they come up with another thing, then another. They refuse to allow us to speak directly to the reviewers or underwriters that are working on our application. My many requests to speak to a manager have also been denied. The agents are only able to read notes written by the reviewers/underwriters, which are often vague and difficult to interpret. So, the agents are left to guess what the notes mean, go into a different system to look for additional notes, reach out to a supervisor to ask what the notes mean or request what they call an escalation or review which so far has not proven to be helpful. Often, I am told they need a document weve already submitted, so I either have to resubmit the same document again, or wait while they look through all submitted documents to find what they need. In addition, they often pretend to not understand the content of the supporting documents and keep asking for letters of explanation to re-explain the same things over and over again. Different agents give conflicting information. I have also reached out via email numerous times, as I prefer to have communications documented in writing. However, I have never received a response to my emails, even though the automated reply says to expect a response within 5 business days. They often do not follow through with scheduled callbacks, or they call my husbands phone (he cant usually answer during the day) even though I request they call mine. Please see further details below.

Our most recent application was submitted on XXXX along with all required supporting documentation:
- XXXX XXXX XXXX XXXX XXXX detailing our income, expenses, assets and reasons for hardship.
- Proof of income: paystubs for my husbands job; XXXX statements and bank statements showing payments received for our individual businesses; XXXX  claim letter showing monthly XXXX  income my husband receives; a signed lease and bank statements showing rent collected from our son who rents a room in our home
- Proof of failed business: tax return showing the business took a loss; bank statements showing no business activity and closure of business bank account
- Proof of occupancy: a utility bill from Bentonville Utilities

Almost immediately after submitting the application and documents, the portal showed there was a problem with the documents. When I called on XXXX and spoke with agent XXXX, she read a note saying verification was required, but it didnt say what kind of verification. She had to look in another system for more information. She then told me they needed proof that my husband and I were the owners/operators of [failed business name]. I immediately submitted a copy of the XXXX XXXX XXXX which lists my husband and myself as the managing members of the XXXX.

On XXXX, I noticed the portal showed our proof of occupancy document had been rejected. When I called to inquire, agent XX/XX/XXXXinformed me that utility bills cannot be accepted as proof of occupancy. I was confused, because on XXXX agent XXXX  had specifically told me to submit a utility bill as proof of occupancy. XXXX  listed off the types of documents that would be acceptable. I then submitted a copy of our homeowners insurance bill, which was on the list of acceptable documents and depicted our address.

On XXXX I noticed that our rental income documents had been rejected. When I called, agent XXXX  told me that the lease was expired and I needed to submit a current one. I pointed out that the lease doesnt expire until XXXX. She said she was updating the notes to reflect that and requesting a review. She also said someone would call me back on XXXX between XXXX and XXXX to update me. I never received a call.

On XXXX, I spoke with XXXX, who informed me that my proof of occupancy document had been rejected and they now needed me to submit two additional documents proving occupancy. I asked him why they needed additional documents when I had submitted what was previously requested. He said that the address on some of our income documents didnt match the address on our application, so they needed more proof of occupancy. This is an absolute lie! Every document we have submitted shows the same address, which is our primary residence. When I asked him which documents showed the wrong address, he couldnt tell me. I also asked him for an update on the supposed expired lease issue. He could not speak to that but told me someone would call me back within 24-48 hours. I went ahead and submitted the two additional proof of occupancy documents (voter ID cards and auto insurance cards), which showed our address. I also sent an email requesting a review and update on the status of our application. I never received a response to my email, nor did I receive the callback Dejuan promised me.

On XXXX, I spoke with agent XXXX, who read the same notes about the lease being expired.  She said the lease agreement did not show a start and end date. I directed her to Section III of the lease, which clearly states This Agreement shall be considered a Fixed-Term Lease. The Tenant shall be allowed to occupy the Premises starting on XXXX and ending on XXXX  ("Lease Term"). At the end of the Lease Term, the Landlord and Tenant shall be required to negotiate renewal options, or the Tenant will vacate the premises. I expressed my concerns that reviewers were not actually reading the documents or were intentionally stalling the process. She said she was requesting a No Movement which would be more effective than the reviews and escalations that had been requested by previous agents. She also informed me that they needed a new Contributor Packet from our son, as the old one had expired on XXXX. To this day, no one has been able to explain why they are considering our son both a tenant and a contributor, as both reflect the same $XXXX  per month that he pays us for rent. I specifically asked her if by packet she meant the Contributor form AND his paystubs, or just the 3-page form. She told me just the form. She also said they needed updated paystubs from my husbands job. The only reason these documents had expired and needed updating is because they had stalled for over 3 weeks falsely claiming our lease document was expired. Still, I submitted the updated documents as requested.

On XXXX, I spoke with agent XXXX. She informed me that they had finally acknowledged that the lease was current and accepted the document. She went on to say that they needed bank statements showing the two most recent months rent deposits. I informed her that we had submitted bank statements showing the XXXX  and XXXX  rent deposits when we submitted our application on XXXX, but since we were now in XXXX  I went ahead and submitted bank statements showing the XXXX  rent deposit as well.

On XXXX, I noticed the portal showed more documents had been rejected. I called and spoke with agent XXXX. She informed me that they needed updated proof of income for [failed business name]. I explained that there was no updated income, because it was a failed business, as reflected in our application, business bank statements and tax return all submitted on XXXX and the letter of explanation submitted on XXXX  The letter of explanation stated Our business, [failed business name], was owned and operated by myself (borrower) and my wife (co-borrower). Please find attached the XXXX XXXX XXXX, filed with the state of Arkansas, showing us as the officers managing the company. There has been no profit and no business activity for nearly two years, as evidenced by the the XXXX  tax return and bank
statements previously submitted. She also read notes saying that my husbands paystubs didnt show year-to-date earnings. I pointed out that the paystubs did in fact show year-to-date earnings in the top right corner. She then said that the bank statements showing our rental income were expired. I explained to her that I had just submitted statements showing rent received for both XXXX  and XXXX  on XXXX. Those were the most recent months. She also said they needed an updated XXXX statement for my individual business. I pointed out that I had submitted a year-to-date XXXX  statement with our application, which she found. She said she was updating the notes on all of these issues and sending to a manager for escalation. She also told me they needed updated paystubs for our son to complete his Contributor Packet, even though I had previously been told they didnt need those. I did request the paystubs from my son and submitted them on XXXX.

On XXXX, I spoke with XXXX, who read the same old notes that they needed statements showing the most recent two months of rental income and proof of current income from [failed business name]. Again, I explained that the rental income had been resubmitted on XXXX, and there was no current income for [failed business name]. I asked her why they kept asking for documents Ive submitted numerous times and why they seem to be looking at [failed business name] as a current source of income when we have repeatedly explained that its a failed business and submitted all of the documents required to support that. She had no answers but updated the notes to reflect this.

On XXXX, I called and spoke with XXXX. She literally read the same notes I had already heard numerous times. The bank statements showing rental income were expired and they needed updated income from [failed business name]. I asked her how the statements showing rent for XXXX  and XXXX  could be expired when we were still in XXXX. I again explained that [failed business name] was a failed business with no income or business activity. I asked what else I could possibly submit to get this message across. She said she was sending a message to the processor who had written the notes and would give me a call back once she heard from them. She also suggested that I resubmit the tax return showing that [failed business name] had taken a loss, which I did that same day. I never received a callback from XX/XX/XXXX.

On XXXX, I spoke with XXXX, who informed me that the failed business issue had finally been resolved, but they were still saying that the statements showing rental income were expired. She said that the previous escalation request was still in progress, so she couldnt put in another one, and I should receive a call with an update by XXXX This was the first time an agent had told me that, as most of them put in overlapping requests for escalation.

On XXXX, I called to find out if there had been any progress. I spoke with agent XXXX. She read the notes As received, XXXX is expired. Hence borrower needs to provide updated the recent XXXX with 90 days with company name and signed. I asked her what business they needed a XXXX for, because there were no updated XXXX  for [failed business name] and they already had the most recent XXXX statements for our individual businesses. She sent a message to her manager asking for help, and was able to confirm that they were again asking for updated proof of income for [failed business name]. I went through the whole explanation again, that this was a failed business, so there was no updated income or XXXX. She acknowledged that she could see the previous letters of explanation stating this. XXXX  said she would update the notes and request another escalation. She suggested that I submit another letter of explanation reiterating that [failed business name] is a failed business with no income or activity in the past two years. She also scheduled to call me back with an update within a week. I immediately started typing a new letter of explanation, but to my surprise, XXXX  called me back before I finished it. She informed me that she had worked with her manager to resolve the issues. Our application had finally been accepted and moved into the underwriting phase. There was nothing left for us to do until a decision was made. After nine months of back-and-forth, they had finally accepted our application. I actually expected them to process our application this time, but I was wrong! When I logged in to check the status a couple of days later XXXX), I saw that our application had been kicked back out of underwriting. Since it was Friday, I decided to wait until Monday to call and inquire.

On XXXX, I spoke with XXXX. He read notes saying they needed documentation supporting the $XXXX income we reported on the Other line of our application. I pointed him to the claim letter from the XXXX  that I had submitted on XXXX explaining that my husband would be receiving $XXXX per month in XXXX  income. I also had the screenshot showing it was submitted on XXXX and had been accepted. He asked me to resubmit the claim letter, which I did while he was still on the phone. He also read notes saying they needed updated paystubs from my husbands Teacher job. I explained that my husband was never a teacher and he had left his previous job with the school district back in XXXX, so there were no updated paystubs. We had already submitted paystubs for my husbands current job and used his current income to complete the Income section of the current application. For some reason, they were looking at documents from our previous application in XXXX, which were expired and no longer relevant to our current application submitted on XXXX. So, basically, they had paused the underwriting process to ask for documents they already had and documents that did not exist. Why would they wait until over two months after we submitted our application to request these documents?

On XXXX, I spoke with agent XXXX, who read the same notes as before. They were still asking for documentation on the $XXXX, which I had now submitted twice, and paystubs for a job my husband no longer had. She said she was requesting an escalation and scheduled a callback for XXXX  at XXXX. I went ahead and submitted the VA  claim letter a third time, as well of a letter of explanation stating that my husband no longer worked for the school district.

On XXXX, I called (since I did not receive the scheduled callback). Agent XXXX  read from the note As we received letter of explanation previously stated that there has been no profit and no business activity for nearly 2 years and received recent letter of explanation stated that co-borrower has grossed $XXXX year-to-date and its deposited to XXXX XXXX XXXX. Need to provide clarification that co-borrower recently receiving business income or not for calculation purposes. Though the note is nearly incoherent, I was able to interpret that they were somehow confused by the fact that [failed business name] was not a source of current income, while my independent business is. These are two separate businesses, which was obvious, because all of the documents submitted to support the failed business showed that businesss name, and all documentation supporting my independent business show its name. The income for my independent business was also included on the income calculations in the Income section of our application. I explained all of this to the agent, who updated the notes. She said she was requesting a review and gave me a case number. That day, I submitted a letter of explanation stating that [failed business name] and my independent business are two separate businesses, and I summarized all of the supporting documentation that had been submitted for each.

On XXXX I spoke with agent XXXX. She informed me that they needed updated XXXX for my independent business, as they had not received one since XXXX  showing income from XXXX  through XXXX. I informed her that I had submitted a year-to-date XXXX on XXXX when I submitted the application. I had a screenshot showing the document had been accepted and didnt expire until XXXX She found the XXXX statement and made notes to reflect. She said that someone would review the notes and update the file within 4 days.

On XXXX, I spoke with agent XXXX, who informed me that they needed an updated XXXX for [XXXX XXXX XXXX], as the last income documentation for that business was from XXXX. I explained to him, as I had already explained to countless agents, that this was a failed business and there simply was no income since XXXX. He attempted to get a manager on the phone to discuss the matter, but was unsuccessful after about 30 minutes of holding. He said he would request an escalation and a callback from a manager. After hanging up, I typed up a XXXX statement for [failed business name] showing $XXXX  income, $XXXX  expenses and $XXXX  profit and the words FAILED BUSINESS in large red letters. I uploaded the document, along with a new letter of explanation reiterating the same information I had already submitted numerous times. Later that day, I received a callback from XXXX, who introduced herself as a team lead. She admitted that they should not need a new XXXX  statement for a failed business, but since I had just submitted one, we would allow them a few days to review it. She said she would be personally monitoring my case and she would call me back in on XXXX with an update.

On XXXX, XXXX  called me back to let me know that they needed clarification that [failed business name] is inactive. I explained to her that I had already clarified it in every way I knew possible. In addition to explaining it over and over again to agent after agent, I had submitted numerous letters of explanation
- On XXXX, I had submitted the required documentation listed on the application to prove a failed business, plus a letter explaining our hardship, stating We did have a real estate investment business that failed in XXXX  as well, due to changes in the real estate market.
- On XXXX, I had submitted a letter stating There has been no profit and no business activity for nearly two years, as evidenced by the the XXXX  tax return and bank statements previously submitted. 
- On XXXX, I had submitted a letter stating Our real estate investing business, [failed business name], has been inactive for about 2 years now. The business took a loss in XXXX, and we have submitted our XXXX  tax return to show this. There was no business activity in XXXX. We are also submitting bank statements showing inactivity and closure of our business bank account. 
- On XXXX, I had submitted a letter stating [failed business name] is a failed business owned by my husband and I. We have had no profits or business activity since XXXX. Therefore, there is no current income from this business. I also submitted this same letter via email but never received a response.
- On XXXX  I had submitted a XXXX statement showing $XXXX  income/expenses/profit. In addition, I had submitted a letter explaining There is no updated income or profit for [failed business name], because this is a failed business, as indicated in the XXXX  submitted on XXXX. There has been no business activity since XXXX. Also, submitted on XXXX were the supporting documents Tax return from the previous year (including all schedules) AND Two months recent bank statements for the business account evidencing cessation of business activity as required to prove business failureXX/XX/XXXXYour team keeps indicating that the XXXX statement for [XXXX XXXX XXXX] is expired. The XXXX statement on page 3 of the XXXX  tax return was not submitted as proof of ongoing income. It is simply an auto-generated worksheet in the tax return showing that the business took a loss that year. We have not been maintaining XXXX statements for the business, since it has been inactive. However, please find attached a new statement showing that there has been $XXXX  income, $XXXX  expenses and $XXXX  profit year-to-date.
XXXX  said she would do her best to get the file updated to reflect this. She then read notes saying they had not received a XXXX for my independent business since XXXX. I informed her, once again, that I had submitted a year-to-date XXXX for that business on XXXX when I submitted the application. The mortal showed it would not expired until XXXX She looked through our documents and confirmed that she had located it and would update the notes. After I hung up, I went ahead and resubmitted an updated XXXX for that business too, so there would be no more excuses.

On XXXX, I logged in to check the status of our application. It showed that all documents had been accepted and our application was in the underwriting phase.

On XXXX, I logged back in to find that they had kicked our application back out of underwriting. I called and spoke to agent XXXX. She read off the notes saying that my husbands paystubs dont show year-to-date earnings. I informed her that the year-to-date earnings are in the upper right corner of the paystub. I also reminded her that this issue had already come up and been resolved in XXXX. She acknowledged that the year-to-date earnings are included on the paystubs. I asked her if it was possible to speak to the team lead, XXXX. She was able to confirm that XXXX  was available and transfer me to her. XXXX  explained that they needed an explanation for the deduction codes: FIT, SS, MC, SWT-AR. I told her these were the most common tax deductions that appear on everyones paystub. It is unbelievable than an underwriter, whose job it is to look at income documents, wouldnt know this. Its even more unbelievable that they would wait until three months after we first submitted paystubs for this job to ask about the deduction codes. Even more egregious, they kicked our application out of underwriting over something so ridiculous! She suggested that I submit a letter of explanation clarifying what each code means. So, I submitted a letter explaining that FIT means Federal Income Tax, SS means Social Security, MC means Medicare and SWT-AR means State Withholding Tax for Arkansas.

On XXXX, the online portal showed my letter of explanation had been rejected. I called and spoke with XXXX. She read the same note saying that my husbands paystubs do not show year-to-date earnings. I explained to her that they do, which she confirmed. I also informed her that I was told to submit a letter of explanation clarifying the deduction codes, but that letter had been rejected. She did not know what the problem was and said she would escalate the issue and call me back with an update. I stressed the urgency of this situation, as our application would be expiring again the next week, if not accepted. XXXX  did call me back later, but she did not have any answers. All she could advise me to do was to call back in a few days.

On XXXX, I spoke with XXXX XXXX who read the same notes that the paystubs do not show YTD earnings. I updated her on the letter of explanation we had submitted. She then claimed the letter of explanation had not been rejected but was still being reviewed. This is not what the online status showed.

On XXXX, I spoke with XXXX. He read the same note saying the paystubs dont show YTD earnings. Once again, I let the agent know that the paystubs do include the YTD earnings and we had submitted a letter of explanation for the deduction codes the previous week, but the online status showed it was rejected. He reached out to a Team Lead for assistance and informed me that someone would contact me by XXXX XXXX with an update. I told him this was urgent, as our most recent application and other documents were due to expire, since they had stalled this process for 3 months. XXXX  told me not to worry about that, because they extend a grace period while waiting on documents.

On XXXX, I spoke with XXXX  and explained to her that I needed to know why my documents were not being accepted, even though I had submitted everything theyd requested. After researching the situation, she informed me that the paystubs show YTD gross earnings, but not YTD net pay. This was ridiculous! First, because all they needed to do was add up the net pay from each paystub to get the total year-to-date net pay. Second, because this was being mentioned for the first time since we submitted the first paystub for this job on XXXX They literally waited 3 months to bring up this issue in order to stall the process further. XXXX  said I needed to submit a letter of explanation breaking down both the YTD gross earnings and YTD net pay, which I did the same day. We have always been very responsive and submitted everything theyve asked for. The online status showed the document pending review for several days before being accepted. 

On XXXX, the portal showed our application had been accepted and entered the underwriting phase again. However, by today XXXX, it had been kicked out again, saying that the XXXX statement for my husbands private security business has expired. Agent XXXX  called and informed us that they hadnt received a XXXX statement for it since XXXX. I informed her that I had submitted a YTD XXXX statement for this business on XXXX, but of course it just expired because they have intentionally stalled this process out so long. We will be submitting the updated XXXX  statement today, but we are not at all confident that it will make any difference. Veterans United is intent on not accepting and processing our loan modification application, so Im sure they will come up with another excuse to reject it and continue dragging out this process indefinitely.

All of these details only depict what we have been through with the most recent application submitted on XXXX. We had already experienced the same stalling tactics with our previous applications submitted in XXXX XXXX and XXXX XXXX. At best, it is unethical, but we are now seeking legal counsel, because we believe this is illegal. It is absolutely intentional and systemic. Veterans United has setup a system that denies effective communication between the applicant and the people reviewing the application. There is no accountability, and there is no mechanism in place for true escalation.