Consumer complaint received 2024-01-22
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — Closing disclosure or other related disclosures
Company: Movement Mortgage LLC (MD)

I am filing a complaint against Movement Mortgage and XXXX XXXX, the lead loan officer from Movement Mortgage handling my home-buyer purchase and closing, on the grounds of negligent misrepresentation resulting in damages of at least {$38000.00}. 

From XX/XX/2023 to XX/XX/2023, my spouse and I were in the process of closing on a house in Maryland with the services of Movement Mortgage and XXXX XXXX. On XX/XX/2023, XXXX promised us that the Maryland XXXX XXXX Program ( XXXX ) would apply to our package such that {$50000.00} of my and my spouses XXXX  loans combined would be paid off ( see XXXXXXXX XXXX XXXX ). Due to XXXX delay in securing us for the XXXX program, the promised {$50000.00} XXXX  loan payoff amount changed to {$40000.00}. We were not made aware of this until XX/XX/XXXX - a month after our offer had been accepted and numerous steps towards closing had been completed ( see Incorrect Numbers.pdf, pg 6 ). 

At the time of discussion with XXXX, I had {$76000.00} in XXXX  loans, across XXXX XXXX, XXXX XXXX, and XXXX. My spouse had {$1700.00} in XXXX  loans from XXXX. Having this knowledge, XXXX promised that XXXX would allow us to pay off my spouses XXXX  loan in its entirety, as well as my XXXX XXXX and XXXX XXXX loans in their entirety. On XX/XX/XXXX, XXXX stated that all XXXX  loans for one borrower must be paid off. The max towards this is $ XXXX ( see Incorrect Numbers.pdf, pg 6 ). XXXX also declared that my XXXX loan would not be affected since my spouses loan and my other XXXX loans would be completely paid off ( see XXXX pg 11 ). 

My spouse and I had reason to believe that Movement Mortgage, and XXXX as its agent, would provide trustworthy information regarding XXXX and all relevant eligibility and procedural details, and that we could reasonably rely upon such information for purchasing a home. Movement Mortgage is an approved Maryland XXXX XXXX, meaning they have been approved by Maryland to help confirm borrowers eligibility and to ensure all applicable requirements are met ( XXXX XXXX XXXX ). Therefore, Movement Mortgage and its agents can be reasonably expected to have sufficient knowledge of the XXXX program, eligibility requirements, and terms and conditions. My spouse and I questioned XXXX several times, and he repeatedly reassured us that we were look [ ing ] great for the XXXXXXXX XXXX Program ( see XXXX XXXX XXXX ). Based on following communications with XXXX, such reassurance was made about the {$40000.00} of XXXX  loans he alleged would be paid off by XXXX ( see Incorrect Numbers.pdf, pg 6 ; see XXXX pg 11 ). 

On XX/XX/2023, just over a week before closing, XXXX XXXX, another loan officer at Movement Mortgage, emailed me a loan estimate to sign. In this loan estimate, I noticed numerical discrepancies and pointed them out to XXXX via email ( see XXXX XXXX XXXX ). In this email chain, XXXX confirmed that the second 0 % interest XXXX forgiveness loan under XXXX would pay up to {$40000.00} of our XXXX  loans ( see XXXX XXXX XXXX, pg 1 ). After my replies noting the financial discrepancies in the purchase loan scenario sheet and in his statements in that email chain, however, I received a call from XXXX on XX/XX/2023, where he then declared that the program would only apply to my spouses {$1700.00} loan ( see XXXX XXXX XXXX, pg 1 ; Incorrect XXXX, pg 2 ). This directly contradicts what XXXX had presented to us numerous times throughout the financing process. This meant that, after the home inspection and all opportunities for us to back out and receive our deposit back had passed, we were just now finding out that only {$1700.00} would be paid off, rather than the {$40000.00} we were expecting and which both XXXX and XXXX had promised. 

When I told XXXX about XXXX declaration that only my spouses {$1700.00} loan would be paid off through XXXX, he again promised that the program could be used towards XXXX of my loans and my spouses entire XXXX  loan, once again misleading us with incorrect information. In that message, he specifically stated that after XXXX reviewing XXXX loan fully paid off and can pay off XXXX of yours ( see XXXX pg 11 ). Later, when XXXX confirmed that his statement was indeed false all along, he advised us to transfer my XXXX  loans to my spouses name so that we could pay off the {$40000.00} of XXXX  loans under my spouses name. He pushed us to do this and promised that this would work ( see XXXX, pg 12-15 ; XXXX XXXX, pg 2-3 ). Relying on XXXX promise, we filed all the paperwork and transfer attempts with XXXX  loan companies such as XXXX, only to once again find out that XXXX had mispresented the situation to us and that the XXXX  loans could not be transferred ( see XXXX XXXX, pg 1-2 ). In fact, XXXX admits that they did not have knowledge of the process, requirements, and numbers nor did they discuss it with Maryland XXXX XXXXXXXX and related parties until after promising us the {$40000.00} XXXX  loan payoff, despite being an approved Maryland XXXX Lender ( see XXXX XXXX, pg 2 ). 

Given that these events all occurred a week before closing, our options were suddenly severely limited and undesirable either we had to ( 1 ) forfeit the home and lose our {$9500.00} deposit ; ( 2 ) use XXXX to only pay off my spouses {$1700.00} XXXX  loan; or ( 3 ) receive a gift to pay off {$38000.00} of the XXXX  loans in my name so that the remaining amount could be paid off in its entirety through XXXX. XXXX was aware that this gift entailed us paying back the {$38000.00} to the gifting party in installments, but he insisted on wording it as a gift so that it wouldnt cause issues on closing. This is further evidence of misrepresentation and coercion from XXXX to induce us to close on the house ( see XXXX, pg 16-17 ). 

At this time, the expected closing date was XX/XX/2023. We provided Movement Mortgage with all of the requested documents before we planned to travel abroad on XX/XX/2023. After returning on XX/XX/2023, we provided Movement Mortgage with any additional documents they had requested. However, Movement Mortgage did not complete the necessary loan approval and paperwork until Friday, XX/XX/2023 and did not submit it to the Maryland XXXX XXXX ( Maryland ) until XX/XX/2023, three days before closing, with the repeated promise that Maryland would review and approve it before our closing date ( see XXXX, pg 21-22 ; see XXXX ). Because Movement Mortgage had only submitted the loan approval to Maryland a mere three days before the expected closing date, Maryland did not review and approve it on time. As a result, we had to request an extension on closing, which the seller of the home did not agree to until the day of the expected closing ( see XXXX XXXX, pg 4 ). If the seller had not agreed to the extension, we could have lost the {$9500.00} of our deposit. The closing was thus delayed to XX/XX/2023, as a result of Movement Mortgages failure to submit our package to Maryland in a timely manner. 

Further negligence is evident in the pre-approval letter submitted with our offer. The pre-approval letter, drafted by Movement Mortgage, stated that the home was located in XXXX XXXX, MD. This was a false statement -- the home is actually located in XXXX XXXX XXXX XXXX, MD. Our real estate agent flagged this error directly to XXXX, who did not reply ( see XXXX, pg 3-4 ). On XX/XX/2023, I followed up with XXXX about the error, and he insisted that the county did not matter and refused to change the county on the pre-approval letter ( see XXXX, pg 7 ). XXXX response to being made aware of the misstatement on the pre-approval letter, a letter that carries significant weight in the processing of a mortgage, demonstrates his failure to conduct due diligence and act in good faith. 

In addition, we had an expected interest rate of 7.375 % on the mortgage, which XXXX stated via email could be locked in 30 days before closing ( see XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX ). XXXX, however, did not lock in this interest rate. As a result of the rate not being locked in, the interest rate increased to 7.5 % on XX/XX/2023 ( see XXXX XXXX ). This is another financial burden incurred as a result of XXXX inaction. 

On XX/XX/2023, when we were finally at the point of closing and received the closing documents, XXXX sent us a closing package to sign which stated incorrectly that my spouse and I were married but separated ( see XXXX XXXX XXXX XXXX XXXXXXXX ). This form was a legally binding document, and when I flagged the error to XXXX, he dismissed my concern saying that whatever we send needs to be signed ( see XXXX XXXX, pg 10-11 ). If we had signed this document like he had pushed for, we would have been legally misrepresenting the status of our relationship. XXXX  attempt to coerce us to misrepresent ourselves on a legal document brings into question his professional character and demonstrates his recklessness towards his clients best interests. 

XXXX actions constitute negligent misrepresentation and, at worst, can be considered fraudulent misrepresentation. XXXX acted recklessly in regard to the veracity of his statements about the conditions of XXXX as applied to our circumstances. He had several opportunities to verify the veracity of his statements, yet he repeatedly made false statements upon which we relied to our detriment. He did not exercise reasonable care in guiding us, and he attempted to coerce us into making erroneous statements on our legal documents, statements which he knew were false. As our lead loan officer, XXXX had a duty to help us navigate the application, approval, and closing process of our mortgage loan. His negligence in doing so led to an out-of-pocket payment of {$38000.00}, a cost unanticipated ( and in fact, promised against ) in our several months of communication with him and Movement Mortgage. 

As demonstrated, my spouse and I were repeatedly lied to, deceived, and coerced. XXXX and XXXX, both agents of Movement Mortgage, provided inaccurate descriptions of the XXXX program and transaction information pertaining to the mortgage, which misled and confused us. These misrepresentations were material. We would not have followed through with the XXXX program nor would we have needed to accept and repay a gift of almost {$40000.00} had we known that XXXX would not let us pay off our XXXX  loans as promised. It was Movement Mortgages responsibility to convey this information to us in a timely manner as it was material to the mortgage transaction. Given Movement Mortgages status as an approved lender for XXXX, it was reasonable for us to rely on XXXX false statements that {$40000.00} of our XXXX  loans could be paid off. Movement Mortgages mismanagement with the submission of our loan approval to Maryland, along with XXXX recklessness with regard to the gift, pre-approval letter, interest rate locking in, and separation agreement, all demonstrate a failure on their behalf to adequately fulfill their mortgage lender duties and to act with due diligence and in good faith. These erroneous missteps have caused me and my spouse immense stress and XXXX  as well as undue financial burdens of {$38000.00} plus the increased mortgage interest rate. 

We demand {$40000.00} for the cost of XXXX  loans which we are now paying at higher interest rates to the gifting party. If Movement Mortgage and/or XXXX fail to respond and agree upon receipt of this complaint, all legal rights shall be explored, including, but not limited to, all legal proceedings necessary to recover damages resulting from their negligence.