Consumer complaint received 2022-10-21
Product: Mortgage — Other type of mortgage
Issue: Closing on a mortgage — 
Company: SOUTHSTATE CORPORATION (NC)

My husband and I started the process of working with South State Bank for a new build on XX/XX/XXXX. The plan was to do their construction loan that just had a 1 time close, that we could roll the proceeds from our own home sale into after, and it would roll into an ARM after construction. We probably should have been concerned for the beginning as the loan officer, XXXX XXXX, told us on multiple occasions he would " have something to us today '' and I had to follow up with him multiple times. However, we moved forward. After a month of waiting on XXXX, following up with XXXX, having him tell us " today '' and not following through. We finally had a call with XXXX to discuss options. Their product required a 720+ credit score. My husbands credit score was XXXX at the time. He said they would consider an except or another option would be a co-signer. Below is the email from XX/XX/XXXX. 

On XX/XX/XXXX, at XXXX XXXX  XXXX XXXX XXXX wrote : XXXX XXXX XXXX and XXXX, XXXX XXXX I was able to get the internet back up and running late today. Unfortunately, the scores decreased slightly to XXXX. At that score, our standard portfolio loan to value is 75 % for your loan size. I do think it is worth asking for a credit score exception to get to 80 % loan to value given the overall credit profile and history. I will need to chat with my credit administrator tomorrow to gain her approval. In my experience, there are a couple items that she tends to look for when considering an exception. 
> > The first item that she looks for as a compensating factor is overall liquidity and reserves. Would you be able to list out for me the individual types of asset accounts that you have and their approximate balances? 
> > The second item that she strongly consider is if the client has and established banking relationship with us or is willing to establish a banking relationship. 
XXXX XXXX As another option, we could always take a co-signer for the construction loan and go 90 % loan to value and when construction is complete we can take that person off the loan and put XXXX back on. That could give time for the scores to come up. Just trying to present all possible options here. 
> > Let me know if you have any questions. 
> > Thanks! 

For the rest of this, keep in mind, he doesn't say, refinance to remove the co-signer. He says remove that person off the loan. THE LOAN, not NEW LOAN. 

We pushed back that we did not want a co-signer. As it seemed silly with my credit score being XXXX, we make XXXX a year, and we have XXXX equity in our current home, and money in savings. 

In response, XXXX offered an 80 % LTV option, which didn't seem as good as others we had talked to. However he never got back to us about if there would be an exception for my husband 's credit score of XXXX in lieu of XXXX. 

We said we would consider a co-signer. Although we were against it, it seemed like the easiest way to get the project moving forward. We spoke to my dad and he was okay with it considering- per XXXX 's email on XX/XX/XXXX, after construction he could remove my dad and put my husband back on. 

Then began a long process of getting my dad approve which was a complete waste of time. From day 1 I explained to XXXX XXXX XXXX was retired. After tons of paperwork, it came back that we ( my father and I ) were not approved for the mortgage together because his lack of income. Another red flag with XXXX XXXX and XXXX, he should have known that before we wasted over a month trying to get my dad qualified. XX/XX/XXXX officially not qualified. 

Keep in mind, this whole time, we already own the property that we will be building on and we are paying two mortgages. I have worked with many other companies, construction loans and conventional, it has never, nor should it ever, take this long. At this point we were beyond frustrated and wasting money. 

Now XXXX recommends that we try to improve my husbands credit score by paying off a dispute with a lease company that he had from many years ago. We proceeded with this. XX/XX/XXXX it comes back that my husbands credit score is XXXX so we can proceed. At this point, we pretty much think we are waiting on a close date as we were told that was the last hurdle. 

XX/XX/XXXX XXXX tells us, email below, " XXXX XXXX, The appraisal came back at {>= $1,000,000}. At 80 % loan to value, the maximum loan amount will be {$960000.00}. We can stay in the 90 % program and keep the loan amount at {>= $1,000,000}. This is the best option. 



As it stands, we are short on documenting the liquid contingency reserve requirement that is equal to 10 % of the cost of construction ( {$77000.00} ). These funds can not be in retirement funds. They can be in savings, or checking. These funds can also come in the form of a gift. 



We are still waiting on the verification of employment form to come back from XXXX, however, our debt to income ratio is a bit over the requirement of 38 % to be on the 90 % program. Right now, it sits at 45 % and we need to be at 38 %. Right now, I have your base salary at approximately {$100000.00}. Is that correct? 



The simplest solution to these items would be for us to add XXXX back to the loan. With his additional income and liquidity, that would get us where we need to go. Let me know if this is the way you guys want to go. " At this point, we have now invested over 4 months with XXXX and South State Bank trying to move this project forward. We think we are about to close. Our builder thinks we are about to close. We have been paying a mortgage for the house we are tearing down to build since XX/XX/XXXX. So we proceed adding my dad back to the loan, because after all, per XXXX on XX/XX/XXXX he can be removed from the loan after construction. 

We finally close XX/XX/XXXX, the longest process ever, which should never have taken this long and wasted tons of our money. 

Fast forward XX/XX/XXXX. Construction is over, or previous home is sold, we want to roll the proceeds in, close out the construction portion, remove my dad from the loan. 

XX/XX/XXXX - My husband reaches out to our XXXX XXXX contact about rolling proceeds and removing my dad from the loan. She said she would connect us with someone. 

XX/XX/XXXX - He has to follow up with her again. 

XX/XX/XXXX - We hear from XXXX XXXX. He was not really intent on fixing the situation but rather just defending XXXX. 

XX/XX/XXXX- XXXX says he is escalating, please give him till the end of the week. 

XX/XX/XXXX - End of the week, no response. 

XX/XX/XXXX - I have to follow up with him. He says he will be connecting us with the XXXX XXXX. 

And that is where we are currently.