Consumer complaint received 2018-09-19
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: Home American Mortgage Corp (NV)

I started a home building process with XXXX XXXX XXXX, who in turn, makes buyers use their lender in order to get closing cost incentives. Their lender, Home American Mortgage is owned by XXXX as well as insurance, title etc. The offered a $ XXXX incentive to use their lender so naturally why wouldn't we? We received their approval up-front and then were required to put more money down due to the upgrades we chose. Once the initial process was over, we never heard from the loan officer until closer to the end. We updated documentation, were told all was good with our loan and started packing up our apartment and getting ready for the move to happen in the next week. Our walk-thru was completed, the closing was scheduled, all was good. 

Until the next day! I received a phone call from Home American Mortgage saying the underwriter would NOT approve our loan!! Mind you, our home was under construction for about 10 months and the loan approval was done up-front then we hear this a few days before our closing was supposed to happen!! They obviously didn't look at our loan up-front or this determination would have been made at that time!! 

We were referred to their " local preferred lender '' who could most likely get the loan done. So we started over from scratch waiting for an up-front approval after letting her know why our loan was being denied by Home American. 

Panic set in as we were going to be homeless in just a few short days. We had a moving van parked in the driveway ready to be loaded, our landlord had already re-rented and the new renters could not delay their move-in so we had to be out. Luckily we had family we moved in with for what turned out to be 3 weeks before the new mortgage company could get the loan closed. 

Not only were we inconvenienced by this whole ordeal, the expenses from moving, rental truck, a new storage unit, paying movers to move twice were all adding up. A day or so later our own realtor called and said XXXX was NOT going to honor the $ XXXX closing cost since our loan was not closed with Home American Mortgage. Panic sets in again as we didn't know where we were going to come up with $ XXXX to cover the closing costs. 

I do have to say we did sign the contract that said the incentive would only be offered with Home American Mortgage. However, that's a VERY gray area in my opinion. They are protected by one sentence but they aren't held accountable for not doing their job in 10 MONTHS??!! Contractually yes we signed it. Ethically should they have honored it?? ABSOLUTELY!!! They didn't have a competent loan XXXX or company with a work flow that should have checks and balances in place to make sure this doesn't happen 4 DAYS BEFORE CLOSING?? 

The stress this put on our family, our finances, ( had to sell a vehicle to get the extra $ XXXX ) and with small children one car just isn't enough!!! We weren't able to get a loan on the car due to debt ratios so that was our only option. I would NEVER recommend anyone buy a home from XXXX, they were dishonest with upgrade issues that our realtor ended up covering out of her commission, they pulled our incentive when they couldn't do the loan and someone else could. The model home agent made a comment like : " Would you like your deposits back? This home has gone up almost $ XXXX in value since you started so we could re-sell it fast ''. REALLY??!!! This remark obviously comes from the top. They DO NOT CARE if they deny anyone at the last minute because they will turn around and sell it for more!! 

I hope Home American Mortgage and XXXX doesn't prey on any other families like they have on ours. They are a disgrace and give home builders a bad reputation!