Consumer complaint received 2024-07-19
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Confusing or misleading advertising or marketing
Company: CrossCountry Mortgage LLC (OR)

Applicant XXXX XXXX. Preferred name XXXX XXXX XXXX, Financial Misrepresentation, Deceptive Practice, Ethics, Steering and Negligence et al On XX/XX/XXXX, an attorney specializing in representing lender liability cases helped me understand that I incurred a loss exceeding my initially requested cash out-of-pocket expense of {$22000.00}. Despite requesting only {$18000.00}, it became evident that I experienced a substantial loss of {$190000.00} due to bad faith, financial misrepresentation, unethical conduct, steering, and negligence. This revelation is due to the fact that I obtained a prequalification letter after XXXX XXXX 's initial call & subsequent occurrences after my loan application and misleading me to believe I qualified for the construction loan in which I sought ; and subsequent emails of which XXXX was a written declaration of equity funding the loan from the property later purchased due to significant equity. I purchased property based upon XXXX XXXX claim. I further spent additional funds towards construction based on additional claims. 

On XX/XX/XXXX, I requested that lender XXXX XXXX contact her Errors & Omissions ( E & O ) carrier regarding a potential claim. As far as I am aware, this has not yet occurred. This correspondence was also sent to Cross Country Mortgage 's CEO, XXXX XXXX, and Corporate Attorney, XXXX XXXX. 

On XX/XX/XXXX, I filed a complaint with the XXXX XXXX XXXX XXXXXXXX XXXX ( XXXX ). The XXXX informed me that it would take up to XXXX weeks to receive a response from the time of filing. Today marks the XXXX day. It is reasonable to expect that XXXX XXXX has had sufficient time to file the claim or at least contact her E & O insurance or surety bond company regarding the complaint. 

Below is a copy of the letter provided to Cross Country Mortgage 's Corporate Attorney, XXXX XXXX, Mortgage Broker, XXXX XXXX, XXXX, XXXX XXXX, and the XXXX XXXX XXXX. 

Please note that Cross Country Mortgage has a history of receiving at least XXXX cease and desist order for misrepresentations, deceptive practices, failure to disclose, deceptive financing terms, bait-and-switch practices, and other unethical activities. 

**************** XXXX XXXX Cross Country Mortgage, Branch XXXX XXXX XXXX XXXX XXXX XXXX, OR XXXX Dear XXXX, I am writing to formally address and express significant concerns regarding the financial damages I have incurred. These damages stem from alleged misrepresentation, unethical conduct, negligence, and steering related to the services you provided. 

Over the past XXXX months, I have acted in good faith, relying on your email communications and representations to other parties. Specifically, from XX/XX/XXXX, to XX/XX/XXXX, I was given no indication that financing would not be secured. It was a reasonable expectation that you would have provided all necessary documentation in XXXX when the original financial amounts were clearly listed. Additionally, it was expected that you would have conducted a thorough credit and XXXX XXXX prior to XXXX to ensure full approval. 

In XX/XX/XXXX, you were aware of the following project costs : {$110000.00} for land buyout ( Current appraised value {$240000.00} w/o infrastructure ) {$160000.00} for the home {$60000.00} for site preparation Total : {$340000.00} ( excluding bank fees ) By XX/XX/XXXX, these costs had been reduced through personal actions by {$22000.00} to : {$110000.00} for land buyout ( expected appraisal w/ infrastructure $ XXXX ) {$150000.00} for the home {$50000.00} for site preparation Total : {$320000.00} ( excluding bank fees ) You assured me that the equity in my property would fund the loan. Relying on this assurance, and your communications, During the months of XXXX & XX/XX/XXXX I incurred {$21000.00} in expenses for site preparation and temporary living arrangements, expenses I would not have undertaken had I been properly informed of my financing status in XXXX. Despite being aware that I was investing in infrastructure and an RV for temporary accommodation, you failed to inform me of any disqualification in whole or part, you failed to inform me of the {$6900.00} wage I would need of which you reasonably should have known in XX/XX/XXXX. Your communications continuously led me to believe that I was qualified for the necessary financing, as evidenced by the numerous email correspondence with myself, contractors and the retailer for the home. 

Throughout the XXXX-month period, it was never communicated that I would need to qualify for the entire project amount or that a monthly income of {$6900.00} was required. This critical information was only disclosed on XX/XX/XXXX, along with an unexpected and sudden requirement to bring {$100000.00} cash to the table. At the time of the initial application, you were aware that I did not have such funds available. Contrary to your recent assertion on XX/XX/XXXX that I only qualified for $ XXXX {$270000.00}, no such conversation took place prior to this date, and no documentation was presented to this effect. Had this information been provided, as required shortly after applying for the loan, I would not have proceeded with the project in XXXX. Had it not been communicated that my equity would fund the loan, again, I would have opted to not incur the costs that I did. 

My understanding for XXXX months, based on your assurances, communication and actions, was that the total project cost of {$340000.00} would be reduced by my equity, effectively lowering the loan amount to {$220000.00}. This is evidenced in the email stating that my equity would fund the loan. The financial details presented to you in XX/XX/XXXX were sufficient for you to prepare the required loan estimate/Good XXXX XXXX as required, yet this was never completed or presented. Despite claiming that documents were sent, I never received them, even after making you aware a second time that I had not received the documents, I still received no documents nor any indication that a XXXX wage of {$6900.00} and that {$100000.00} cash was necessary. 

Furthermore, despite telling me that the {$230.00} debt increase in XX/XX/XXXX shifted my XXXX and that I no longer qualified based in part on this, this does not logically explain the discrepancy in qualification between XX/XX/XXXX and XX/XX/XXXX, especially considering the reduction in project costs from {$340000.00} to {$320000.00} due to personal investments. Despite these reductions, you continued to assure me by actions I was qualified for the full project amount. Your direct communication with my contractors to discuss loan draws further reinforced this belief, which any reasonable person would have concluded based on your previous numerous emails and calls. 

Your failure to provide a Loan Estimate/Good Faith Estimate despite having all necessary information in XX/XX/XXXX, citing the equity to fund and then the sudden demand for {$100000.00} in XXXX, contradict your previous assurances. You represented that no additional funds were needed and that the equity would fund the loan. This did not transpire as you had indicated. Equity financing trades a percentage of a businesss equity, or ownership, in exchange for funding. This did not happen as you said it would. Equity financing is not a loan and you went from my equity funding the loan to me funding the loan with funds you knew I never had. 

On XX/XX/XXXX, When I inquired for a third time about documents and that we needed to sign so that I could get the project started before season change, this is when I was finally notified that I did not qualify based upon my wage and a lack of cash. You then directed me towards a hard money lender, XXXX of XXXX, as a potential solution. I, albeit reluctantly, agreed to explore this option but received no further communication from you as promised regarding the status of this. With the culmination of everything this finally led to the termination of our business relationship on XX/XX/XXXX. These misrepresentations, unethical conduct, negligence has not only resulted in the loss of an expected home, impacting multiple persons but has also left me technically homeless as I have no proper plumbing facilities of which the septic would have resolved and your actions may have prevented me from being able to obtain the proper facilities. These contrary statements by you, leading me to specific expectations and not receiving those expectations will necessitate additional expenses for winterizing the RV and securing a secondary loan for septic installation, which is critical for XXXX purposes that expires in a few months. This grant you knew about since XXXX and the reimbursement thereof and it is expected that you understood how crucial this loan was. 

In your email dated XX/XX/XXXX, you misled me into believing that no money down was required and failed to inform me in XXXX of the disqualification from the total project cost due to wage and other items as mentioned above. You had more than sufficient time to notify me, well before XX/XX/XXXX of not qualifying for the full construction amount. My expectation to complete this project with no further out-of-pocket expenses other than what I spent as outlined above was reasonable based on your assurances. 

Given the circumstances, I feel it is fair to assert that your actions were unethical, misrepresentative, negligent, and amounted to steering. Consequently, I respectfully request the amount of {$18000.00} as sufficient reimbursement. This amount is less than the actual amount of financial damage incurred. I will still be required to take a loan for the remaining balance for my septic. This will allow me to proceed with the septic so as to have proper plumbing and to meet the XXXX deadline. I expect you to notify your insurance or surety bond carrier of a potential errors and omissions claim or other claim as appropriate.. At that time the insurance or surety company will reach out to me. If I do not hear from your insurance or surety company, further actions may be taken of which may include a request of more than the total damages currently incurred. 

Sincerely, XXXX XXXX XXXX CC : XXXX XXXX XXXX XXXX XXXX XXXX