Consumer complaint received 2020-04-16
Product: Mortgage — FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: Freedom Mortgage Company (CA)

My wife and I purchased our first home with an FHA loan about a year ago. 

We are both named on the title, but all financing was done in my name, with my credit score. I was the sole applicant for the mortgage. My wife is in the process of US XXXX, and has documents to verify this. We file our taxes jointly, and she has an XXXX. 

Our mortgage is about $ XXXX. It was sold to a lender, named FREEDOM MORTGAGE, soon after we got the house. Toward the end of 2019, I started looking for a refi, because interest rates dropped, and the equity and my credit score are both good. Freedom mortgage contacted me, offering a Streamline FHA loan at a 1 % interest reduction. I made it clear that my wife was on the title, but she would not be included in the loan application. They assured me it was not an issue, and there would be very little documentation, no income verification and no title changes. It was a streamline loan. Everybody was happy. 

The new loan was approved in XXXX, and we were ready to sign just before XXXX. On XX/XX/2019, a notary came to our house, with the documents. He checked my id, and saw everything was in order. Then, he examined my wife 's id, and told us it was not acceptable. She presented the same documents used at the original signing, about ten months earlier. I told him the XXXX XXXX, and XXXX XXXX  ( XXXX ) were both valid. He had no reason to think otherwise. Her signature is embedded in both documents. I also had a copy of our marriage certificate. The gentleman told us, he would not accept the docs because they were not issued by a US federal, or state authority. 

I insisted that Freedom Mortgage had agreed to service a valid FHA loan. The previous tile company had validated her id when title was created. They were bound by what they agreed to service. I was not late on my payments, and everything was already approved. 

The notary left with unsigned loan documents. Immediately, I began contacting the lender 's representatives to fix the problem. No workable solution has been offered by the lender. If I take my wife of the title, it becomes a full docs refi. Then, we would have to re-instate her with further approval complications. 

After countless phone conversations, up to the lender 's legal department, I asked for a thorough, written explanation of their decision. In response, we received a brief form letter with a box checked, and the words, " Unable to verify/validation applicant 's identification. '' The content of the form letter referred my credit information at various reporting agencies, and the " FAIR CREDIT REPORTING ACT. '' Nothing could have been more off base. The last minute denial had nothing to do with my credit or identity. They have not even given the correct reason for their rejection. 

Two other factors are frustrating : 1. I have lost wages due to the Coronavirus situation, and, 2. I have not been able to find another lender that will wade into the situation. 
I called the original title company and explained the situation. The lady told me, " You need to get a lender that has a brain! '' But I haven't been able to get out from under this ridiculous set of circumstances. Are notaries the new decision makers for my largest earthly investment? 

Wouldn't it be great if consumers had a choice about who can buy their mortgage? They can dump me, if I get behind in my payments. But I can't get rid of them, when they screw up big time. 

The value of a 1 % interest rate reduction, for 350 months. is {$35000.00} without compounding. It's at competitive rate, and it's what they approved. It's also what they want me to pay, for the uncomfortable privilege of being one of their " valued customers. ''