Consumer complaint received 2022-12-13
Product: Mortgage — Other type of mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: Vendor Resource Management, Inc. (AK)

I applied for a mortgage loan on XX/XX/XXXX. On that date, I provided both my and my spouses w-2s, paystubs, a full loan application on their website, bank statements, leases, and a separate e-mail explanation of my real estate holdings ( rents, term of leases, etc. ). I also provided insurance dec pages, mortgage statements for each house, the source of my down payment, and my realtors contact information. I provided a complete application, and all documents requested with the exception of my tax returns. My accountant is completing them still, and I did inform them I would send as soon as they were completed. 

On XX/XX/XXXX I received an email back from XXXX XXXX at VRM Lending that my application was on hold until my tax returns were received. She also confirmed my 5 % down payment and that she had a copy of the purchase contract. Confirming she has the loan amount, purchase price, and address in addition to my application. At this point she has confirmed in writing she has all 6 trigger pieces of information. 

On XX/XX/XXXX I e-mailed the VP of XXXX XXXX XXXXXXXX XXXX, and asked for her assistance. I was not getting much of any responses or answers from XXXX ( I received one answer to 4 emails over approximately a two week span ). I mentioned to XXXX that I was coming to the end of my due diligence period, and I alluded to the fact that I was entitled an XXXX  as I had provided the 6 trigger pieces of information. I have not even been given an estimated interest rate or closing costs at this point. It is unacceptable to be 2+ weeks into a contract, and not really know what you are agreeing to. What if the closing costs are XXXX XXXX? What if the interest rate is 10 % and the mortgage payment is outrageous? I have been given no information on the terms of my loan at this point. XXXX did not respond in 2 days or so, so I went on her calendar and made a calendar appointment for a phone call from her email signature ( I have worked with her for a previous transaction, which is how I got her signature ) for Friday XXXX at noon  my time.

We had the call at noon, and XXXX and another lady who was the Operations manager? maybe? were present on the call.

They insisted I was not due an XXXX  because I had not provided my tax returns, so I did not provide all 6 pieces of information, as they could not calculate my rental income without the returns. I informed her I gave them my rental income via email/leases, and that I was aware they would be unable to use any of the rents to qualify me. One property wasn't rented at all in XXXX  due to major renovations ( also purchased as a foreclosure using this lender ), and it is now on a 9 month lease. My other two leases are month to month, and they require a full 12 month lease to qualify. I said I understand that these do not meet your requirements, so it seems to me you should be qualifying me with all the mortgage payments and the rental income is superfluous. Here nor there, you have a verbal and therefore you DO have my income for the purposes of requiring a Loan Estimate. They told me that my word is useless ( and yes, they did use those words ). I very specifically stated you DO have all 6 trigger terms required for an XXXX. They disagreed.

It got unpleasant. At this point I believe they were angered that I had essentially called them out on their violations. I tried to do it in a nudging like " hey, don't forget about this let 's work as a team '' kind of way. But it's frustrating to be 2 weeks into a contract and not even really know what I'm agreeing to. Is my rate 5 %? 6 %? 7 %? It makes a huge difference in the monthly payment. They did verbally give me the current rate and APR during the phone call XXXX, but I have yet to see any estimates of the closing costs, etc. They told me they would be informing the seller that I had not completed my application, and they were denying me for a loan. I kept stating, you are not denying me, my decision is incomplete until you can receive this last piece of information needed to make your complete decision. That is a major difference. At no point was I asked for my permission to release my information to the seller. I was basically in tears when I got off the phone call. They went as far as to tell me they were reporting the realtors for fraud because a box on the contract was checked stating there was an approval letter for the transaction, but they had not issued an approval letter. I understand being " unkind '' isn't a CFPB issue per say, but my point was they were acting purposefully with ill intent. I am certain they do not send a denial letter to the seller for every client who has not provided every single requested document within 14 days. The agents tell me they sometimes get them the day before closing ; which is typically at least 45 days. They did it to me purposefully to harm me/in retaliation because I called them out for violating mortgage laws. That is a CFPB issue, because it's discrimination. I am being treated differently because I have some basic mortgage law knowledge/know my rights. 

On Monday XX/XX/XXXX I received a termination request from the seller which states " The buyer ( name ) has not satisfied their terms of the contract to submit a full application for lending. They also have insufficient documentation to process a loan ''. 

My complaints for mortgage law violations are : 1. I was not provided an LE within the 3 business days from providing the 6 triggers, as legally required.

2. My information was provided to the seller without my consent, and inaccurately. The application was completed, and almost all mortgage documents were provided. The last item was forthcoming, and being worked on diligently.

The harm caused to me is as follows : 1. Financially- I will now loose out on the $ 500+/- home inspection I paid for, the {$50.00} +/- credit report I was required to pay for up front, and I now am loosing out on purchasing this home as an investment.

2. Reputation- I am a member of the real estate community, and I am now having to defend myself/my reputation to other peers of my community. " I did complete the application ''. " I'm not actually being declined ''. " Literally, all they are missing is my tax returns ; my accountant is almost done with them I promise ''.

3. Stress- I'm literally begging my accountant in tears to finish them as quickly as they can. It's only been 14 days since they requested tax returns from me, with a holiday in the middle ( XXXX  ). It hasn't been an outrageous amount of time. I'm acting in good faith and working diligently to get them ASAP.