Consumer complaint received 2021-05-13
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: CrossCountry Mortgage LLC (CA)

To Whom It May Concern : I write to let you know about the absolutely terrible experience I had with Cross County Mortgage, LLC earlier this year. The company relied on a grossly incompetent and verifiably false appraisal in denying me a mortgage. Even after I pointed out the many basic, fundamental flaws in the appraisal, the company still relied upon it in denying my mortgage refinance. Additionally, Cross County Mortgage has shown to be deceptive in their communications with me with consistently shifting and illogical explanations for why they continued to deny the loan. The experience has cost me in time and money, in that I did not refinance with another lender while I was engaged in a multi-month process with this company. 

The mortgage loan officer I worked with is XXXX XXXX ( NMLS ID # XXXX ). I had originally completed the application for a loan on XX/XX/2020 with Cross County Mortgage ( via a referral from XXXX ), as they provided an attractive rate of 2.875 % for a 30-year fixed-rate mortgage with low closing costs. I immediately provided all the documents necessary for pre-approval. XXXX then scheduled the two required appraisals. The first appraiser ( XXXX XXXX ) visited on XX/XX/2020 and the second ( XXXX XXXX ) visited shorty after that. 

A few facts about the building I live in : it contains three dwelling units on each of three levels and also contains a finished, permitted two-bedroom apartment in the basement that is rented out and is legally considered part of my unit ( XXXX XXXX ). It is not considered an accessory dwelling unit or a fourth unit. 

The appraisal done by XXXX XXXX is fundamentally flawed and doesn't meet minimum professional standards. On the day Mr. XXXX visited for his appraisal, he told me that he had 10 appraisal appointments that day, and he was in the building for approximately 40 minutes total. He asked me to provide floor plans because he didnt have time to measure anything himself. His visit redefined the word rushed. 

Here are some of the facts that were incorrect in his appraisal : A hugely incorrect floor plan. The three-unit building I live in has approximately 5164 sq ft of total living area and 1650 sq ft of non-living area, for a gross building area of 6815 sq ft. Thew first appraisal got this right. Mr. XXXX got it massively wrong and his sketch of the first floor space omits about half the space, and his *gross* building area comes to 4,749 sq ft total. This is a significant difference -- 30 % of the building disappears from his analysis. 

Incorrect zoning. Mr. XXXX lists the zoning as XXXX and states 3 units per lot in his appraisal. That is wrongthe zoning is RTO-Mission with no density limit. Here is the actual restriction on density for RTO-Mission : " No density limit. Density is regulated by the permitted height and bulk, and required setbacks, exposure, and open space of each parcel, along with Residential Design Guidelines. '' The city guidelines state that the character of the District is primarily of structures with three or more units of a range of sizes and types suitable for a variety of households. 

Failure to list all rents received. Mr. XXXX lists the total market rent as three rentals for {$12000.00} total market value, when there are four rentable units. The first appraisal notes this and uses a ( conservative ) market rent of {$16000.00} from four rentable units. Mr. XXXX misses including the rent from an entire unit. 

Failure to make any adjustment for the basement apartment. In preparing his comps, Mr. XXXX makes no mention or adjustment for the in-law unit, nor does he include that as a part of XXXX ( legally it is considered living space as a part of the XXXX unit ). That's two bedrooms, one kitchen/living room, one bath and an outdoor deck that are unaccounted for in his comps. 

There are so many other errors in the appraisal that are infuriating. For example, the property is located at XXXX XXXX XXXX in XXXX XXXX, not " XXXX XXXX XXXX # XXXX ''. The third floor unit is XXXX, not XXXX, etc. 

The upshot is that the valuation in Mr. XXXX appraisal came in at over a XXXX dollars less than the first appraisal. This was astounding and doesnt comport with any market surveys, and also doesnt comport with other appraisals I had completed for another refinance in 2020. I certainly understand there can be legitimate differences of opinion in valuation opinions, but the underlying facts in this report about the property are just erroneous. It's a sloppy -- and frankly, offensive -- appraisal. 

However, when I pointed out these errors to XXXX XXXX and the Cross Country Mortgage team, they still relied on the appraisal. They should have disregarded it, or ordered another appraisal, but they did not. XXXX instead said that Cross Country was denying for two reasons : first, they had to rely on the lower appraisal, and second, that there was a legal Accessory Dwelling Unit in the building that prevented refinancing. Both assertions are clearly and demonstrably false, and even after I provided her with that information they refused to honor the terms of the refinance. I find this behavior astounding and troubling, and I hope they are held accountable for their shoddy underwriting standards. 

Sincerely, XXXX XXXX