Consumer complaint received 2020-06-04
Product: Mortgage — FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: NATIONS LENDING CORPORATION (MD)

I have tried to resolve my complaint directly with Nations Lending via written and verbal communication. To date, the company has failed to address ALL of my concerns in a timely fashion which I believe I'm owed. I am frustrated that it has taken several complaints to address all of my issues with Nations Lending. As a consumer, I should have not have suffered from the negligent internal practices of the financial institution.

Nations Lending had my application for 6 MONTHS. I admit, that my scenario was atypical, but my file remained opened and I was not made aware of concerns until XX/XX/2019 over the phone. Despite having my application for 6 months, Nations Lending informed that I needed 20 % down rather than the traditional 3.5 % down simply because the property was in the name of the estate without further explanation. Nor did the lender require me to submit a new application or request additional documentation. Nations Lending has existing background information and I firmly believe in my particular situation I met the exceptions for FHA 's identity of interest clause. 

My early application with Nations Lending was premised on having approximately {$18000.00} ( as shown on application ) to $ XXXX ( anticipated cash to close verbally by NL ). Due to the last minute scramble, I had no other choice but to simply purchase the property using a 30 year conventional loan and had to bring a sum {$12000.00} at closing. Now, with long anticipated hopes of renovations, I am expected to have {$36000.00} at closing with a new lender. 

I also strongly believe that I was NOT properly notified in writing in the appropriate time frame of 30 days under RegB or truthfully notified of NL reasoning, rationale, decision for that matter. At the very least, I am seeking reimbursement for fees, compensatory relief for RegB violations, and reasonable monetary compensation for anticipated future costs for a renovation loan. 

My after the fact findings found that transactions that do not meet the identity of interest exceptions, require 15 % down and to this day, I do not understand why they required even more than 15 % if this were the case. Most notably, I received what I would deem a questionable, inaccurate, and insulting Statement of Credit Denial, Termination, or Change ( See STATEMENT OF CREDIT DENIAL, TERMINATION, OR ). The Statement of Credit Denial, Termination, or Change was dated XX/XX/2019 with a timestamp of XXXX depicting the excellent credit scores of XXXX, XXXX, and XXXX. On Page 1, it says that my application for mortgage was denied because of inadequate collateral and insufficient funds to close. I will note that it looks like the preparer had the option to write out other reasoning for denial, but chose to write insufficient funds to close. This was simply not the case as my application was premised on a FHA XXXX loan with having 3.5 % down. Even more alarming, the Notice is dated XX/XX/2019 and says it was mailed on XX/XX/2019, and signed by XXXX XXXX XXXX. The envelope however was post marked XX/XX/2019 from the zip code XXXX which coincides with XXXX XXXX XXXX XXXX, XXXX XXXX, XXXX, Ohio, XXXX. This leaves me to suggest that the letter sat on someones desk for several weeks and I was robbed of proper notification required under federal regulation. Nations Lending had full access to my email and mailing address. I will also note that there were no changes to my address near that timeframe, so I am still unable to reasonably justify the rationale of extreme delay or inaccurate information. As a consumer, I should have been notified with accurate reasoning and timely notification. USPS is not the only avenue to promptly notify consumers. When asked about the timely notification, I have yet to receive a clear or direct answer. 

There were no concerns about my income, credit score, employment, source of funds, bank accounts, LTV, debt to income or contractor communicated with me verbally or written. Not once, did anyone ask me for additional supporting documentation or express concern surrounding the policy for FHAs Identity of Interest. Adverse action notices under the ECOA and Regulation B are designed to help consumers and businesses by providing transparency to the credit underwriting process and protecting against potential credit discrimination by requiring creditors to explain the reasons adverse action was taken. Given all of the combined factors of my experience with Nations Lending and the discrepancies on the Statement of Credit Denial, Termination, Change. I am aware that consumers can seek relief for Regulation B violations with up to $ XXXX for individual claims. According to HUD XXXX, the 85 % LTV is waived for transactions where the borrower is purchasing " the Principal Residence of another Family Member ... or a Property owned by another Family Member in which the Borrower has been a tenant for at least six months immediately predating the sales contract. A lease or other written evidence to verify occupancy is required. " If another family member owns the property and the buyer has been a tenant for at least six months prior to the purchase contract, an exception is allowed for 3.5 % down payment. The court order judgement sent on XX/XX/2019 shows this! I will note that my application was signed on XX/XX/2019! 

I was told that Nations Lending was not in receipt of this order until my initial complaint was made, however I have evidence to suggest otherwise ( See ORDER AND JUDGEMENT NOTICE ). Every obstacle and delay, I encountered it. 
If anything the Order of judgement dated XX/XX/2019 would have further supported grounds for FHAs exception to the identity of interest. I would also like to add that there is a public searchable record of property taxes and I had readily available receipt of expenses as a tenant that predated the sales contract of at least six months. 
Nations Lending was well aware of my purchase situation, noted on the application dated XX/XX/2019. 

-The court order dated XX/XX/2019 was sent to XXXX  XXXX  AND XXXX XXXX , Loan Officer at Nations Lending on XX/XX/2019 at XXXX. In this email, I explicitly state, XXXX XXXX ( title case lawyer ) is happy to answer any questions you or the underwriter may have. To my knowledge noone had any concerns about the judgement order or contacted the attorney. 

I sent an updated contract of sale, pay stubs bank statements, W2s to XXXX XXXX XXXX throughout XX/XX/2019 and XX/XX/2019. 

-All through XXXX to XX/XX/2019, I asked about the status of my loan, asking if anything else was needed. See Correspondence Compilation. 

-On the afternoon of XX/XX/XXXX, I received a phone call from the loan officer that 20 % was required as a down payment per FHA guidelines because the property was simply in the name of the estate. No requests for documentation were made or explanation in writing or email were provided.