Consumer complaint received 2018-08-01
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — 
Company: HOMESTAR FINANCIAL CORPORATION (GA)

The borrower and co-borrower claim HomeStar Financial and its Mortgage Loan Officer exhibited the following behaviors resulting in financial loss : Failure to provide a loan estimate within three days of application Failure to address a loan file in a timely manner Unethical and inconspicuous behavior Failure to maintain adequate procedures Failure to provide loan estimate in good faith ( increase in fees at closing ) Failure to provide a closing disclosure in good faith Failure to provide closing disclosure three business days prior so consummation HomeStar Financial Corp failed to provide a loan estimate within three days of the loan application for the borrower and co-borrower. On XX/XX/2018 borrower completed the loan application process with HomeStar Financial Corp through their Mortgage Loan Officer, XXXX XXXX and his online page. A loan estimate was not provided until XX/XX/2018. On XX/XX/2018 the co-borrower submitted an online loan application with XXXX XXXX of HomeStar financial Corp. A Loan estimate was not provided until XX/XX/2018. HomeStar Financial Corp and their loan officer failed to provide a loan estimate within three days of the loan application to the borrower and co-borrower. 

Mortgage Loan Officer, XXXX XXXX, exhibited unethical, dishonest, and misleading practices. On XX/XX/XXXX the borrower asked about locking the rate via text message ; the loan officer said he would look at them in the morning. On XX/XX/XXXX, borrower asked did he have everything he needed from us and what rate we are locking in ; the loan officer responded he was looking at rates that day. On XX/XX/XXXX the borrower asked for a good faith estimate and to lock in the rate ; the loan officer responded they are now called loan estimates and should receive it that day. The borrower did not receive it. On XX/XX/XXXX borrower asked to lock the rate again ; the loan officer responded he would try and lock the rate the next day ( XX/XX/XXXX ). On this same day, the co-borrower asked XXXX XXXX if she was the processor because they still hadnt heard anything. On XX/XX/XXXX the loan officer texted advising of not so good news. Shortly after, on XX/XX/XXXX, the co-borrower followed up with XXXX on a recorded call to see why the rate had not been locked the several times the borrower requested it. It had been almost a month since the initial request. He said, I couldnt lock it, because of issues with the secondary market. Co-borrower responded, the way it was presented to [ borrower }, you stated there was an issue with the secondary market and therefore could not lock the rate. But from what youre saying, there was an internal issue with the HomeStars internal Secondary Market Team that didnt allow you to lock the rate. If you stated that from the beginning, we would have made a different decision on lenders. But it was not presented that way. It was misleading and dishonest. I think it was done intentionally. This was the first instance of unethical and inconspicuous behavior in addition to the failure to act on a loan file in a timely manner. 

The incomplete / inadequate management processes of the data provided to the loan officer, information being given to the loan processor, and the data on the closing disclosure did not reflect the information send to the loan officer and presumably the underwriter. The borrowers name was consistently spelled wrong. The loan officer failed to provide updated numbers to the loan processor and closing agent. The underwriter sited a changed circumstances in the updated closing disclosure, but did not account for all the income for both the borrower and co-borrower. The income information on the closing disclosure was not correct and was not provided until less than 24 hours prior to closing. When the first disclosure was provided, it was not correct. When questioned, the man officer said it only matters once we get to the table. They will have all the numbers correct then. 

Towards the end of the transaction, the co-borrower explained she believed the loan officer failed to act on the loan file in a timely manner. He knowingly did not send or attempt to lock the rate. He knowingly failed to review the file to confirm the intent to proceed had been signed. The intent to proceed was sent, but seven days after it was sent it still had not been signed ; even though the borrower asked XXXX  plenty of times what else was needed from them since they hadnt heard any questions from the underwriter. It was not until the appraisal was scheduled and not paid for that the loan processor revealed the intent to proceed had not been signed. The loan officer had no clue. This is a clear process failure at HomeStar ; and a negligence on the part of the loan officer. On the dates and time where the borrower checked on the rate lock and status of loan processing, the loan officer didnt even check to see if the borrower or co borrower had any outstanding items. Both had been checking the online document management system to see if there were any actions on their part. The intent to proceed was not shown in either account. 

The second instance of unethical behavior occurred on XX/XX/2018  three business days before scheduled closing. Without knowledge or permission from the buyers, the loan officer, who never previously responded to any of the agents inquiries, reached out to the buyers agent to see if, there was any way to increase the purchase price to XXXX and get an additional XXXX in seller assist?. The co-borrower contacted him immediately. In a recorded conversation, XXXX tried to explain that sometimes you can game these numbers. This behavior show failure to understand and address the loan file in a timely manner in addition to unethical and inconspicuous behavior. 

HomeStar Financial Corp, through their non-compete agreement with the loan officer, are exchanging a thing of value ( his job ) to support their unethical processes. During the recorded conversation with the co-borrower on XX/XX/2018 about rates and fees XXXX stated, I completely understand your turmoil. I have been unhappy with HomeStar the last couple months myself. If I could leave tomorrow I would. Unfortunately Im on a non-compete clause that wont allow me to. He essentially can do whatever he wants in a loan file without recourse. He cant leave and they wont dismiss him. This is quid pro quo. 


Please keep in mind we have recordings of the conversations conducted between the loan officer and the co-borrower in addition to text message screenshots of the loan officer requesting an increase in the sales price. We are fully prepared to pursue this matter to the fullest extent possible.