Consumer complaint received 2021-04-27
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: CARRINGTON MORTGAGE SERVICES, LLC (MD)

This complaint is being filed due to the response from Carrington Mortgage Service final response to my previous complaint. 

Carrington Mortgage Service indicated that I contact the Appraisal Company for a refund. I contacted theXX/XX/XXXX XXXX XXXX and they indicated I should contact Carrington Mortgage Services for a refund. ( see attached response from the Appraisal Company, indicating that I should receive refund from Carrington Mortgage Services ). 

As of XX/XX/XXXX an Appraisal for the property located at XXXX XXXX XXXX, XX/XX/XXXX XXXX, Maryland on behalf of Carrington Mortgage Services , LLC was prepared. As a result of the Appraisal submitted by XXXX XXXX XXXX XXXX XXXX I was refused a loan due to not enough equity to receive a refinance with cash out because I was above the 80 % threshold required. I disputed the results. Carrington Mortgage indicated that they contacted XXXX XXXX XXXX XXXX XXXX and they stand by the Appraisal submitted and refuse to make any changes. 

I base my request on the following facts. 


1. XXXX XXXX XXXX XXXX XXXX submitted an Appraisal for the value of {$290000.00} on XX/XX/XXXX. 

2. When I purchased the house in XXXX, it was valued at {$300000.00}. 

3 My property is listed as a 4 Bedroom and the Appraisal listed my home as a XXXX Bedroom. 

4. I also disputed some of the comparisons used.in this Appraisal company I decided to use a different lender and Appraisal company. As of XX/XX/XXXX my property was appraised at {$350000.00}. And as a result my loan was approved by a different lender. 

After exhausting all remedies with Carrington Mortgage, they suggested that I request my refund and compensation from XXXX XXXX XXXX XXXX XXXX. I followed up with the XXXX XXXX XXXX XXXX XXXX and they indicated that I pursue my refund with Carrington Mortgage Services. ( see attached response from XXXX XXXX XXXX XXXX XXXX ) In a matter of 4 months the value of my home based on the most recent appraisal increased by {$55000.00} compared to the results of the Appraisal XXXX XXXX XXXX XXXX XXXX completed 4 months ago. The housing market has improved from the time I purchased the house, where it was value at {$300000.00}. Your company valued my home at {$10000.00} less than it's original value. 

BACKGROUND Company responded to previous complaint : Company responded on XX/XX/XXXX RESPONSE TYPE Closed with explanation Company 's Response XX/XX/XXXX SENT VIA THE CFPB PORTAL XXXX XXXX XXXX XXXX XXXXXX/XX/XXXXXXXX, MD XXXX XXXX : XXXX XXXX XXXX. : XXXX Property Address : XXXX XXXX XXXX, XX/XX/XXXX XXXX, MD XXXX Case No. : XXXX Dear Mr. XXXX : The Customer Advocate Department of Carrington Mortgage Services , LLC ( CMS ) is in receipt of your complaint filed with the Consumer Financial Protection Bureau ( CFPB ) and received in our office electronically via the CFPB Portal on XX/XX/XXXX. CMS is committed to responsible lending and servicing and we would like to address any concerns you may have. The following is our response to the issue ( s ) raised in the inquiry. As we understand the complaint, you state that you were attempting to refinance the subject property with a cash-out option and you paid for an appraisal. However, when the appraisal was completed it reflected a below market value of {$290000.00} because the appraisal company used comparable properties that are fifteen ( 15 ) years older than the subject property. You further state that to date you have not received a response on the status of your loan application. Your desired resolution is for CMS to refund the appraisal fee and provide you with correspondence indicating the status of your loan application. A review of the records found that on or about XX/XX/XXXX, you contacted CMSs Mortgage Lending Division ( MLD ) to inquire about refinancing your existing loan. During this telephone conversation, the CMS loan officer informed you that CMS was permitted to lend up to eighty percent of the appraised value of the subject property. You advised the CMS representative that you believed the market value was approximately {$340000.00}. Based on the information available at that time, the CMS loan officer took an application from you for a loan in the amount of {$270000.00}. The CMS loan officer informed you that in order to proceed with the loan, an appraisal would need to be completed. On XX/XX/XXXX, CMS sent the initial disclosures to you for a loan in the amount of {$270000.00}, which included the Acknowledgment of Intent to Proceed, Authorization to Pull Credit, and the Loan Estimate. Thereafter, CMS ordered an appraisal of the subject property. On or about XX/XX/XXXX, CMS received the attached appraisal from the appraisal company. The appraisal reflected an appraised value of {$290000.00}. It is important to note that the appraisal company also sent a copy of the appraisal to you via email to XXXX. Thereafter, you contacted CMS because you were not in agreement with the appraised value that was reflected in the appraisal. In an attempt to have the appraisal value adjusted, CMS submitted a Reconsideration of Value to the appraisal company. Regrettably, on XX/XX/XXXX, CMS was notified by the appraisal company advising that they were standing by the appraised value reflected in the appraisal and would not be changing the appraised value. Regrettably, because CMS is only able to lend up to eighty percent of the appraised value of the subject property, and you did not wish to proceed with a loan based on the appraised value, your application was withdrawn. Correspondingly, on XX/XX/XXXX, CMS sent the attached Statement of Credit Denial, Termination, or Change ( SCDTC ) to you pursuant to applicable law and program guidelines. Under the circumstances, CMS must respectfully deny your request to be reimbursed for the {$480.00} you paid the appraisal company to complete the appraisal. Should you wish to pursue this matter further, we encourage you to contact the appraisal company directly. The appraisal company, XXXX XXXX XXXX XXXX XXXX can be reached by telephone at ( XXXX ) XXXX or by mail at XXXX XX/XX/XXXX XXXX XXXX, XXXX XXXX, XXXX XXXX, MO XXXX. We trust that this communication addresses all of the concerns noted in the complaint. If you have any further questions, please contact the undersigned at XXXX XXXX XXXX XXXX, Monday through Friday, XXXX XXXX to XXXX XXXX, XXXX XXXX. Sincerely, XXXX XXXX XXXX Customer Advocate Cc : Consumer Financial Protection Bureau ATTACHMENTS XXXX - XXXX XXXX XXXX XXXX CFPB Response and Supporting Documents part 1 - XXXX ( XXXX MB ) XXXX - XXXX XXXX XXXX XXXX CFPB Response and Supporting Documents part XXXX - XXXX ( XXXX MB ) Feedback provided STATUS Feedback provided on XX/XX/XXXX Your feedback THE COMPANYS RESPONSE ADDRESSED ALL OF MY ISSUES No ADDITIONAL COMMENTS In response to the decision, I believe all issues I raised were not addressed. My house was appraised as a three bedroom, however my house is a four bedroom. This is not disputed. On that fact alone the lender has a responsibility to assure that this fact is corrected. As for me contacting the Appraiser, I did not hire the appraiser the lender chose to use him. I have no say so about who to use. Once the lender sees the error of my house being appraised as a three bedroom and not a four bedroom, the lender has the obligation to address that issue with the appraiser. 
I UNDERSTAND THE COMPANYS RESPONSE TO MY COMPLAINT No THE COMPANY DID WHAT THEY SAID THEY WOULD DO WITH MY COMPLAINT No ADDITIONAL COMMENTS I initiated my loan application in XXXX of last year. I did not get a response from the Lender until I filed this complaint. XX/XX/XXXX. The lender paid the appraiser and they are the ones to request a refund. I made payment to the lender.