Consumer complaint received 2023-12-09
Product: Mortgage — VA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Application denials
Company: Chrysalis Holdings LLC (MO)

On XXXX XX/XX/XXXX, I started the application process of refinancing my home mortgage with a cash out option with a company called New Day USA for the purpose of paying off approx. {$26000.00} of personal debt ( credit cards, personal loans, title loan, etc... ) After the initial phone conversation with an account executive named XXXX during which time I told him I was behind on my mortgage payment, he said it would be alright but he also wanted me to email him a copy of my current mortgage statement showing I was behind, so I did that. Then the appraisal, pest inspection and water test ( I'm on a well ) were scheduled and completed, the appraisal came back at {$160000.00}, the other inspections came back good. Then XXXX is telling me the loan got approved for 100 % of the appraised value, meaning I would be able to access approx. {$27000.00} which would completely payoff all of my personal debt I mentioned earlier. Then I was sent the closing documents which I e-signed and returned to New Day USA. I was told the disbursement date for the funds would be XXXX XX/XX/XXXX, after not hearing from XXXX that morning, I texted him around noon asking when the funds would be disbursed. I got a reply a little later on from him saying he was no longer working in the mortgage department and someone else was handling my file, and he gave me a number to call to which I called and talked to a man ( cant remember his name ) who told me also XXXX wasn't working in the mortgage department and that my loan got disapproved. I was in disbelief, I asked why and was told because I was behind on my current mortgage, I was furious because they were told this from the beginning from me on the phone and by me emailing my mortgage statement to them. Then a few weeks later in late XX/XX/XXXX, I received in the mail, the letter of adverse action from New Day USA, it stated my loan was disapproved because I was behind on payments, the strange thing about this letter I noted was it's dated XXXX XX/XX/XXXX, the same day I started the loan process. It appears they're trying to hide the fact the loan went all the way through the closing documents being sent to me and myself e-signing and returning them. I also asked about my closing documents and was told " what closing documents ''? to which I replied the ones in my customer portal account to which I was told that account has already been deleted, I thought to myself, how convenient. Now this has pretty much wrecked my credit because I can't get a refinance loan until I can show XXXX consecutive months of on time payments which wont be until XX/XX/XXXX, since I can't access my equity in my house to payoff the high interest, high payment debt I had planned on doing back in XX/XX/XXXX, that debt has become delinquent. In my opinion New Day USA should be held accountable for their incompetence by proceeding with my loan knowing I was behind. I also feel I should be compensated in some way I can payoff the personal debt that was supposed to get paid off when I received the funds from my " approved '' loan.