Consumer complaint received 2024-04-21
Product: Mortgage — VA mortgage
Issue: Closing on a mortgage — Closing disclosure or other related disclosures
Company: SUCCESS MORTGAGE PARTNERS, INC (MD)

On XX/XX/year> I worked with XXXX XXXX XXXX, real estate broker, to close on a home ultimately offering {$40000.00} above asking price due to the post pandemic housing market. Due to a 7 day window allotted for home inspection I used the home inspector that XXXX XXXX XXXX recommended. I also used the mortgage brokerage she recommended, Success Mortgage, only later to find out that her husband would be handling the loan. I was able to secure a better rate with XXXX mortgage, however, the agent stated that we ran the risk of the owners backing out of the deal if we extended the time to close. XXXX XXXX was able to match the rate and close within XXXX weeks. 

18 months later we began to discover moisture infiltration problems, significant termite damage, and mold. It was later discovered that though the termite inspection was to be executed by the seller per VA guidelines, my real estate agent had the inspection completed through the home inspector she recommended to us. The home inspector subcontracted the termite inspection out to an active real estate agent of the XXXX real estate brokerage who also worked as a termite inspector. None of this was disclosed to me. 

The termite inspection report noted that there was no wood destroying insect damage found. We moved forward with closing on XX/XX/year> at XXXX title. While following up on the validity of the XXXXermite inspection I not only found that ( 1 ) the inspection was to be setup and paid for by the seller ( 2 ) the sellers became aware of the termite damage many years prior to selling when they renovated and added a garage ( 3 ) the termite inspector was an agent of the listing brokerage, but ( XXXX ) the XXXX was changed by Success Mortgage to remove the termite inspection fee from the final document ( 5 ) Success Mortgage did not include the termite inspection report in the closing documents to be signed by the seller acknowledging that all information about termite damaged had been disclosed to the seller ( 6 ) Success Mortgage refunded the cost of the termite inspection to the seller.

Success Mortgage, through XXXX XXXX, deliberately disregarded key requirements in the VA loan process designed to ensure the service members home is free of potentially costly pests and damage. Consequently, I have incurred over {$60000.00} in expenses in foundation repair, mold remediation, installation of moisture barrier, and removal of XXXX linear feet ( XXXX ft high ) of framing and insulation. The header, floor joist, and sill plate are also damaged and will need to be removed and replaced. The damage is so significant the tax value of the home was decreased by {$80000.00}. 

I filed a customer complaint with Success Mortgage detailing the conflict of interest issues with the real estate agent and their mortgage branch manager/consultant, missing documents, and the altered documents. The company responded that they reviewed the matter, the termite inspection stated no pests, and I should contact the termite inspection company. The audit director stated that she was " unable to confirm whether the document was in the closing package ''