Consumer complaint received 2022-06-03
Product: Mortgage — FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: SIERRA PACIFIC MORTGAGE (MN)

In XX/XX/2021, we began the pre-approval process with XXXX XXXX, XXXX XXXX, with Sierra Pacific Mortgage, in the Employee Loan division. I was a " retail '' loan officer, so I opted to work through this division to proceed with a home purchase. In short, we were eventually approved to purchase a home in XXXX, MN for the amount of {$380000.00} on XX/XX/2021. 

We wrote a Purchase Agreement which was accepted and submitted to XXXX XXXX for the property located at XXXX XXXX XXXX, XXXX MN for the purchase price of {$380000.00}. It should be noted that we had submitted all income and asset information, including two ( 2 ) years of taxes, which resulted in extensive review by XXXX XXXX, as can be evidenced by numerous emails. Therefore, only AFTER the review of all of this information, and much effort expended to get our finances and credit obligations in line, were we provided with the Pre-Approval which led to the subsequent Purchase Offer. The Purchase, once accepted, was scheduled to close in XX/XX/2021. 

We spent {$570.00} on inspections and {$500.00} for an appraisal during this time, and then, after all this work and effort, on XX/XX/2021, XXXX XXXX- per dated email- confirmed that he was " not aware '' of an FHA specific underwriting guideline regarding self-employment calculations of business mileage and business use of home that, with roughly ten ( 10 ) days prior to closing, caused our FHA loan to be disallowed. This also after having provided all the necessary documentation months prior to, having made his recommended adjustments to our credit profile, paying a judgment off, and going through several additional hurdles. 

XXXX attempted to work an approval through Conventional, which I clearly advised him would not work due to the more-restrictive debt ratios, which eventually came to be true. Ultimately, our loan was declined at 2.75 %, at wholesale terms for both Conventional and FHA, for a purchase price of {$380000.00}. That also after spending {$1000.00} in fees that, if XXXX XXXX had checked his work, would never have been spent as the Pre-Approval was apparently invalid from the start! 

It is interesting to note, however, that we turned to an outside " retail '' loan officer at Mortgages Unlimited who, within a month, preapproved us for an FHA purchase of {$380000.00} on another home. We closed without any problem- at " retail '' terms- such as 3.125 % and {$4700.00} in additional closing costs - by XX/XX/XXXX for the property located at XXXX XXXX XXXX, XXXX, MN. 

Therefore, we strongly feel that the experience we endured with XXXX XXXX XXXX was due to his utter negligence, and lack of due diligence. Had he done his job properly, we should have been able to purchase the property at XXXX XXXX XXXX, when the purchase was at the same price as the home we eventually did close on later, and the terms were even more favorable on the purchase with which we were working on with him, than the terms for the purchase that we later closed on. 

I am submitting this complaint as a direct reflection of XXXX XXXX 's incompetence, as well as that of his team, and am seeking resolution, especially with reference to the investment of {$1000.00} in unnecessary fees paid. I await response while at the same time have prepared and am ready to submit a Conciliation Court filing with XXXX XXXX for Small Claims litigation. 

Thank you.