Consumer complaint received 2016-09-02
Product: Mortgage — Other mortgage
Issue: Application, originator, mortgage broker — 
Company: HOMESTEAD FUNDING CORPORATION (CT)

In XXXX XXXX gave me a pre approval for mortgage, when he pulled my credit & checked my income. He stated that I had a collection account that would have to be paid and I would have to provide information in regards to the Bankruptcy that was showing on my credit. Also he stated that when it came time to do the application for the actual property once I find it I would have to provide proof that I was not the XXXX paying the car payment that showed on my credit report. XX/XX/XXXX I found a home which I put a {$5000.00} deposit on for a short sale. The realtor requested another pre approval XX/XX/XXXX which XXXX provided. The deal for that property feel through in XXXX of XXXX because of the seller of the property. XX/XX/XXXX XXXX received my taxes for XX/XX/XXXX & XX/XX/XXXX so that I can receive and updated pre approval letter. XXXX also pulled my credit again. XX/XX/XXXX I found another property. At the location of the property my realtor XXXX called XXXX and informed XXXX that I found another property, but this property needed work. XXXX XXXX that we would have to do a XXXX loan. I put an offer in for this house XX/XX/XXXX which was accepted & put a {$2000.00} deposit down on this home. HUD came back with the contract and all information was emailed to XXXX. XXXX stated to me that he needed 2 months bank statements from my personal & business account, he needed 12 months of bank statements from the car owner showing that the payments where coming from the car owner and not myself, he stated that he needed a letter from the collection account that was showing on my credit report stating the account was paid, and he also stated that he needed the information regarding the Bankruptcy. All of this information was submitted to XXXX in a timely manner. The last document which was the bankruptcy paper was submitted on XXXX XXXX, XXXX which he stated he received. XXXX stated he had everything he needed to submit the loan and it would take a week to hear back. A week went back and XXXX stated that me not having enough open credit was going to be an issue. He stated to give him until Thursday which was XXXX XXXX XXXX. On XXXX XXXX, XXXX XXXX stated he did not submit the loan, because he asked around and was told the loan would not go through because I did not have enough credit history. So he was n't going to submit the loan after he already told me he submitted the loan. On XXXX/XXXX/XXXX my realtor XXXX called XXXX asking about the loan, and informed him that I would need a denial letter in order to receive my deposit back. XXXX stated that he could n't provide a denial letter because he did n't submit the loan, because he felt the underwriter would n't approve the loan because of my credit. Then XXXX stated that he did n't think I was going to go through with that particular house he thought I would look for a house that didnt require any work to be done. I asked XXXX if I decided to go with a regular house what would be the chances of that loan going through and XXXX stated XXXX-XXXX % chance it would go through. My issue is how do you provide a pre approval on 3 separate occasions if there is an issue with a persons credit. You have them looking for a house putting a deposit down just not to submit it. Also why would a regular loan go through and not the other loan. Why is he picking and choosing if he 's going to submit a loan when he provided a pre approval on 3 different occasions and nothing has changed on my credit since he pulled it in XXXX. I feel like he 's waiting peoples time, because from my understanding I 'm not the first person he has done it to. I work hard for my money to jeporadize it on a property if I knew I had no possible chance of getting approved for the loan. I feel he is very unprofessional and this is not an ethical way of conducting business.