Consumer complaint received 2023-10-23
Product: Mortgage — FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Negative impact of inaccurate appraisal
Company: CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP (TX)

727 days since I reported a {$100000.00} health and safety error and omission in my FHA appraisal that would have disqualified the loan from funding, and for 727 days Cardinal financial has refused to order the required field review to determine property eligibility, specifically an interior review which HUD states ; is an important part of the field review since a serious oversight by the appraiser of a noticeable defect in the property could affect the health and safety of the occupants or the continued marketability of the property. 

Not only does Cardinal Financial not care about the health and safety of my XXXX XXXX and I, they have intentionally subjected us to additional cruel and unusual punishment for 727 days and counting rather than order the required field review, despite HUD determining 18 appraisal deficiencies, which would have prompted them to mitigate per HUD 2 years ago. 

( 3 ) Required Documentation The Mortgagee must retain all selection criteria, review documentation, Findings, and actions taken to mitigate Findings. 

Instead they forced my XXXX XXXX and I to live amongst raw sewage with periods of no source of water due to not having money for alternate living expenses on top of attorney fees. That is until the home became so full of mold we became homeless. Ive spent over {$30000.00} in unnecessary attorney fees that the required field review would have prevented. Ive been forced to answer four rounds of discovery and to sit through 6 hours of depositions being asked if I have ever been an underwriter, do I have any aspirations of being an attorney and how much I make as if to estimate how long I could possibly financially pursue them. What they failed to calculate is persistence, which is priceless. For two years neither HUD FHA nor my own attorney informed me of my right to a field review. If it werent for my own research I wouldve never voluntarily been told what I am owed due to FHA telling me quote HUD and the FHA have no further response for you multiple times over the past two years and the CFPB using the FHAs fraudulent response to the lender that, no further action is needed, in order to close multiple complaints. My XXXXXXXX XXXX and I left my abusive marriage in XXXX and sacrificed for two years rebuilding my credit that my ex husband destroyed in order to gain the ability to purchase a home for us and instead of building equity for myself and my children the past two years, weve become homeless and in debt and my window of opportunity to achieve homeownership as a single mother is all but forgotten, as even if I were to sell the home it would not obtain the amount the loan was issued for and I am priced out of the market with todays rates. All my credit cards are maxed out and past due. Im saddled with a {$9000.00} loan at a XXXX XXXX interest rate I had to obtain for an attorney. Ive been placed on XXXX XXXX medication. My XXXX XXXX XXXX told me he is homesick because we no longer have a home. XXXX XXXX had to help us obtain a 1 bedroom apartment all because Cardinal Financial refused to order a required field review to prove the property was not eligible for the loan 2 years ago. Their attorney stating to my attorney, you want us to order something that would prove us wrong? when I requested a review appraisal over a year ago. 

I received the following from HUD on XX/XX/XXXX, 723 days after reporting the error. 

XXXX XXXX correctly states that the Mortgagee is required to perform a field review when they receive a complaint from a borrower. HUD Handbook 4000.1 II.V.A.3.c.ii. ( C ). ( 1 ). ( b ) Property and Appraisals, Field Reviews, states The Mortgagees appraisal field review sample must include the following all Mortgages for which the Mortgagee has received a Property complaint from the Borrower ( s ). However, this requested review must be ordered by the lender. HUD doesnt perform or direct valuation reviews. XXXX XXXX should request such a review from her lender. 

I am still waiting on Cardinal Financial to order a field review and their proposed court date is XXXX of XXXX which will subject us to 9 more months of unnecessary mental, physical and financial harm and thousands more that we dont have, for a total of 2 years and 9 months of intentional and strategic abuse rather than cooperation to resolve their clients error. 

A ) Findings A Finding is a final determination of defect by the mortgagee. 
( B ) Materiality In the context of mortgage origination and underwriting, a Finding is Material if disclosure of the Finding would have altered the mortgagees decision to approve the mortgage or to endorse or seek endorsement from FHA for insurance of the mortgage. 
In the context of mortgage servicing, a Finding is Material if it has a financial impact on the property, the Borrower, and/or FHA. 
( C ) Mitigated or Resolved A Finding has been Mitigated or Resolved if the mortgagee has adequately addressed the deficiencies underlying the Finding, and such deficiencies have been remedied so that the mortgage presents an acceptable level of risk to the mortgagee and to FHA. 

The only thing Cardinal Financial has adequately addressed is destroying the lives of me and my XXXXXXXX XXXX