Consumer complaint received 2018-07-27
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: MORTGAGE LENDERS OF AMERICA (VA)

A contract was submitted XX/XX/2018 accepted and signed by the seller XX/XX/2018. 1 %, {$1500.00}, earnest money was given. The application for a mortgage began. The local bank would not do a conventional mortgage due to debt to income ratio. 2 online banks looked at the numbers and indicated they could work the numbers. A home ready mortgage was presented as an option. Mortgage Lenders of America was chosen. They had good ratings online and a good score with the XXXX XXXX XXXX. They were listed with appropriate licenses for Maryland where the property is, hopefully, being purchased. This is a first time home purchase.

An online company was chosen with the belief that they could better the rates and process of a brick and mortar bank. Also, the local bank that knew me could not approve a conventional loan which was required by the seller. Credit score was 700 plus, however debt to income was on the border of conventional requirements. Approval was given by Mortgage Lenders of America for conventional for XXXX more than the my offer. Appraisal came in at {$20000.00} more than the offer. Banking statements, verification of funds for closing, employment records, tax records were all provided within hours of their requests. To cover a third increase in closing disclosure documentation, a gift letter, {$4000.00}, with transfer to title company, XX/XX/XXXX, was produced. The original settlement date was set for XX/XX/XXXX per the ratified contract. On XX/XX/XXXX, I received a call from the Loan Origination Manager. Loan Specialist that had been working the case from early XXXX during the housing search for pre-approval was no longer with the company. Interesting as I had spoken with him just 4 hours earlier. New Mortgage Loan Specialist being assigned. After calls and email, finally heard from the new person late in the following day. He needed to review the file. Over the next 2 days, it became apparent that even complying with every document request within hours or even minutes, that the settlement date would be missed. An extension was requested and granted by the seller for the following Wednesday, XX/XX/XXXX. The seller will not go past that date. 
Now, XX/XX/XXXX, the Loan Origination Manager returned my call requesting an update ( I had left several messages throughout the day ) only to inform me that they could not approve a conventional loan, even though there was a letter of approval, because the taxes were too high and again, the loan to income ratio was not in line with conventional, but FHA could work. Again, reminded him that the taxes were stated in the contract which included the XXXX listing that showed them. Response was that the taxes must have been entered incorrectly and there was no recourse. If the debt could be reduced or the car payment refinanced, there was a chance that the date of XX/XX/XXXX could be met for closing. I am working my best to fund paying off the credit card debt from another gift as the car loan is at a low interest rate already ( 3.94 % ). 

I am afraid that the paper trail for the transfer of funds and pay down of the credit card will be so tight time wise and there will be another 'set back ' that will have the seller walk away and the house search will have to happen again. 

I find it interesting that in the beginning of this process, calls were returned within an hour or so. Now in the final hours, my calls go unanswered for hours.