Consumer complaint received 2021-08-06
Product: Mortgage — FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: Michigan Mutual, Inc. (NY)

My loan was sent to underwriting several times and they waited to the last minute to catch that XXXX  was a community state In XXXX I received an call from an inquiry to apply for an FHA mortgage. I spoke with XXXX XXXX. 

I explained to XXXX my situation and income. My income is ssdi, ssdi family allowance for my children, spousal support, and child support. My documents has not changed during the entire time. When I explained to XXXX the ssdi family allowance. She told me that fine, we may just have to research it together and show the underwriters but we will cross that bridge when we get there. 

XXXX also expressed her concern regarding my income and situation and told me that she wanted to submit my file to underwriting to make sure we know exactly what they would accept and what they need in order to approve the income documents prior to sending me an pre approval to shop for a home. 

I was confident in what she was telling me and it made sense. I knew my income was not traditional so I was happy to know that when I actually get an pre approval that we wouldn't have problems with that part. 

I went through underwriting 3 times prior to getting a pre approval letter. 


Facts : they knew I was still legally married and not divorced from day one. 

Fact : they knew I was looking to move to XXXX  and was selling my place in XXXX  Facts : they knew my XXXX income and that one of my dependents will be turning XXXX in less than 3 years. 

These things didn't change! 

XXXX goes by still working out the kinks and but no issues or questions concerning the documents I sent. My credit has to be pulled again. I'm still being sold on the fact that underwriting is reviewing the income documents and credit. I had to remove disputes of my credit. I had no conversation with XXXX XXXX but was speaking to XXXX. 

XXXX I resolved the credit issues and now underwriting has revied my documents and sent me new conditions. I thought all was good. I started looking at homes with my pre approval and new conditions. 

Fact : they knew from the XXXX I was not legally separated. 

Fact : they knew from XXXX that I was moving to XXXX  a community property state. 

Issues : they didn't mention the my spouse debt having to be included in mine. Had they done this in the beginning I wouldn't have been able to move forward. 

His debt increased my debt to income ratio and place me in an unqualifing state. 

I asked several times if they were going to deny me to send me a letter so that I can at least recover my earnest money deposit. 

When I finally receive an email for my letter and logged on I noticed the reason stated was customer withdrawal. 

Not only did they drop the ball, give me the run around, but had intentionally jeopardize my opportunity to receive my earnest money. Making it look as if I withdrew my loan instead of a denial due to the real reasons. My dti and or income because my spouse debt had to be added to the loan. Please see attached screenshot from XXXX XXXX basically stating to me that they couldn't do the loan. This was also unethical of XXXX to deliberately change the reason for the withdrawal.