Consumer complaint received 2020-10-12
Product: Mortgage — FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: GUARANTEED RATE INC. (NC)

In early XXXX, I started the process of purchasing a home for myself and my XXXX  girls. I was provided with the preapproval, the lender had full knowledge of my situation and qualified the loan as such. When I received the disclosures, the fees were so high, I thought it was predatory lending or a very high cost loan. I asked that we hold off on getting an appraisal and get the approval subject to satisfactory appraisal. I was told the file had been submitted to underwriting and it was now time to ordeR the appraisal without yet having seen a full conditional approval with which there should not have been any approval conditions because I well documented the file. I was asked to pay XXXX for an appraisal, when I communicated to the originator that no FHA appraisal costs XXXX, she then told me it was XXXX which I paid. On top of this I paid for a home inspection XXXX, and my deposits. I continuously asked for an approval prior to the due diligence date. I did not receive one. When continuously questioning the fees, and the reason the rate was not locked, I as told my rate went froM a 2.75 to 4.125 with a lender credit if 1 point. We all know rates are not in the 4a right now with decent credit. At the start of the process, I requested to do a 293 ( k ) loan as there were some updates I wanted to make Two weeks later the originator told me it was too late to structure for a 203 despite the fact that a I already had an FHA approved contractor ready to provide me with estimates. I was never given explanation as to why the fees were exorbitant. Moving on, I am  XXXX collecting SSDI. SSDI can be used as income to qualify if you do not have a definitive date that payments will cease, it is assumed that you will continue to receive it for the next 3 years. In the meantime, I also returned to full time work as I could be accommodated with my  XXXX. The lender requested all kinds of documents to document my receiving XXXX. I had no issue with that because despite the fact that the loan qualified without that income, it was a compensating factor. After being asked on numerous occasions for different documents regarding XXXX that I could not provide such as tax returns because SSDI is non taxable income, I was told they ordered a 4505, well, I am not self-employed, Therefore, a 4506 was not necessary. COVID guidelines clearly state a 4506 is only necessary when the borrower is self employed. I provided a months worth of paystubs and all the other documents and then I was told they were not even using my SSDI to qualify. I asked why and got the same answer as to why the fees were so high, I was ignored. Moving along, I  continuously requested an approval letter and again, I was ignored. The closing is scheduled for XX/XX/XXXX which the lender is well aware. They were also aware of the due diligence date and did not have the appraisal back to meet the date I had to request extensions despite the fact that the appraisal had been ordered 2 weeks prior. Today XX/XX/XXXX, I received a denial letter citing temporary or unstable employment. Clearly the underwriter who was first a first level, then a second level, and then a regional matter could not comprehend and interpret FHA guidelines. Being that I was XXXX, but still had a 2 year previous work history, I was currently employed since XX/XX/XXXX, and I chose to accept another position in the same line of work with an increase in salary l. According to HUD and FHA guidelines, a gap of employment s 6 months or more or if you changed jobs 3 times within 12 months, none of which occurred. The lender was supposed to qualify me using the XXXX provided in the current offer letter as I was in the same line of work, however, my salary increased. Once U provided the lender with my identification and then realizing I was XXXX American, XXXX and a single mother, I feel as though they did not care at all about my housing situation and the fact that they were in no way following FHA guidelines. Now being that the closing was supposed to take place on the XXXX, I have to scramble to get this approved when it should have been weeks ago if I had not been discriminated against