Consumer complaint received 2021-06-09
Product: Mortgage — VA mortgage
Issue: Closing on a mortgage — 
Company: LD Holdings Group, LLC (SC)

First of all, I am a 36  year veteran of the United States XXXX attempting to construct our retirement home. 

We were referred to the loanDepot Mortgage Corporation seeking a 30 year VA Construction loan in XX/XX/XXXX. We spoke with the local loanDepot 's Loan Consultant ( Mr. XXXX XXXX NMLS # XXXX ) who assured us they offered a loan service and product that would cost us XXXX down payment and zero interest payments during construction period for a 30 year VA construction at 100 % financing. The mortgage would be at a fixed interest rate of 3.5 % with an underwriting and processing fee of {$890.00} that he estimated he could close within 45-60 days. 

Given this, we agreed to use their services and applied for the VA construction loan with loanDepot on XXXX XX/XX/XXXX. We were asked to provide copies of the land contract on XXXX XX/XX/XXXX with a tentative closing date of XXXX XX/XX/XXXX. We were aslo asked to provide a detailed breakdown of the cost of construction from the builder, which we promptly provided on XXXX XX/XX/XXXX. As of XXXX XX/XX/XXXX, we had not yet received a mortgage approval or any loan estimates and disclosures from loanDepot. We felt this was unusual, and kept inquiring about the loan approval status update. Finally, on XXXX XX/XX/XXXX, Mr. XXXX emailed me to indicate that due to the COVID 19 pandemic and its impact on the economy, XXXX XXXX XXXX XXXX XXXX XXXX  and other lending institutions associated with them had suspended all VA construction applications and submissions at that time. At the time he indicated the lenders anticipated the suspension lasting approximately three to four weeks ( See Attached email dated XXXX XX/XX/XXXX ). At this point, we had to withdraw from the existing land contract, stop the title research, which they ordered, and notify the builder that everything was on hold pending loanDepot notification that the VA construction lending had resumed. Keeping in mind, we had yet to received a loan estimate or any disclosures on the projected loan to date. We were on hold until XXXX XX/XX/XXXX, when loanDepot contacted me to indicate that XXXX  had picked back up VA CP lending programs. After loosing the previous land contract, it took us until XXXX XX/XX/XXXX to find another lot, and we signed the contract on XXXX XX/XX/XXXX, which we uploaded a copy to loanDepot. Per coordination with loanDepot, we scheduled a closing date for XXXX XX/XX/XXXX, loanDepot had my attorney start the title research again, and they requested an updated detailed builder 's breakdown to construct of home. On XXXX XX/XX/XXXX, we finally received our first loan estimate and disclosure for loan # XXXX thanking me for the application and looking forward to working with me. The loanDepot consultant then requested a list of needed documents, which I promptly upload to the loanDepot mortgage site on XXXX XX/XX/XXXX with a follow up email to the loan consultant. We then went from XXXX XX/XX/XXXX through XXXX XX/XX/XXXX before we got a response to numerous email follow up on the status of the VA construction loan from loanDepot ; realizing we had a closing, which they agreed on, scheduled for XXXX XX/XX/XXXX. This was really poor customer service to say the least. 
During this period, we received a loan estimate from loanDepot on XXXX XX/XX/XXXX and again on XXXX XX/XX/XXXX ( See Attached ). Given the fact that we were still working this VA construction loan since XXXX XX/XX/XXXX with the same attorney and builder, but were sent this very large and cumbersome XXXX builder registration packet to set the builder up as an approved VA builder, which I later found out that he had already been verified and had a VA builder number. We had an entire year to get this requirement accomplished, but they procrastinated until late in the mortgage process to request it.. This is yet another case of loanDepot 's representatives being unqualified and untrained in the timely brokerage of a VA construction loan. Not to mention, their failure to be responsive and provide timely updates on the loan processing. Needless to say, we did not meet the closing date of XXXX XX/XX/XXXX, which caused the seller to almost withdraw from the contract of the land sale. We asked him to please work with us until we could close the loan. We asked for an extension until XXXX XX/XX/XXXX, which was coordinated with the loanDepot representatives who indicated they could get it done by this time. On XXXX XX/XX/XXXX I had been unable to reach the loanDepot consultant for several days, so I wrote an email to the corporate office in hopes to get someone responsible and competent enough in the VA construction loan process to assist us with getting the loan to the closing table ( See Attached email dated XXXX XX/XX/XXXX ). At this point I had lost all trust and confidence in the loanDepot 's loan consultant to assist us with our loan. On XXXX XX/XX/XXXX, Mr. XXXX XXXX ( NMLS # XXXX ), loanDepot 's local Branch Manager and supervision of Mr. XXXX, took over the loan consulting in effort to expedite getting the loan to closing. He immediately began to work directly with me and my builder to get him registered as a VA builder for XXXX which remember, he is already registered as a VA builder with a number and builds many home for VA mortgages. loanDepot representatives also asked my builder to pay {$4000.00} to {$5000.00} for a builder 's permit prior to loan approval and closing. It was also brought to my attention they asked the builder to add {$17000.00} in the builder 's contract costs that we signed on XXXX XX/XX/XXXX without my knowledge and approval, which the builder promptly denied their request. 

On XXXX XX/XX/XXXX after the builder had been registered as a VA again, loanDepot finally uploaded my 1003 mortgage loan application into the XXXX  MyLoanCenter for further processing and underwriting after 13 months and 6 days. At the same time, the seller is loosing his patience and considering walking away from the land contract that is two weeks past the extended closing date of XXXX XX/XX/XXXX. This was personally embarrassing, humiliating and questioned our word and credibility in a community in which we intend to reside. 

This is where this complaint is really substantiated through loanDepot 's representatives actions, inactions, omissions, misrepresentation, misleading, deceptive lending actions and practices, failure to properly disclose critical loan costs to us, providing false and inaccurate information regarding the loan VA construction costs to us, and finally admitting that they did not understand or was knowledgeable of this loan product. Furthermore, they indicated this was the very first loan of this type that they tried to process, and they were simply not qualified to adequately process it. In fact, the loanDepot 's Branch Manager ( XXXX XXXX ) told me that if he had been involved from the beginning a year ago, he would have not accepted the loan for processing. 

On XXXX XX/XX/XXXX, once the loan was uploaded to XXXX they produced a new online loan estimate and disclosures that vastly differed from any of the original loanDepot estimates ( XXXX XX/XX/XXXX XX/XX/XXXX XXXX XXXX XXXX  XXXX See Attached ). 

One of the disclosures from XXXX  on XXXX XX/XX/XXXX was a Mortgage Broker Fee Agreement for us to agree to compensate loanDepot {$10000.00}, which the loanDepot Branch Manager, MrXXXX XXXX, acknowledged that it would be paid by us the borrowers. This was the first time we ever heard about this so called brokerage fee. 

I printed a copy of it in order to discuss it with loanDepot 's representatives ( See Attached ). After inquiring about this agreement, I went back to the XXXX  website to review it again, and interestingly this document was removed from the disclosures on the site. I felt that this was also very questionable, since it was the only document that was removed after I inquired about it. 

In our opinion, this mortgage loan company did not earn XXXX XXXXr of compensation, given their lack of qualifications and misrepresentation, not to mention the pain, aggravation, emotional distress, and personal embarrassment they have caused to our credibility. They should be compensating us for the harm they have caused us throughout this process. 

The major differences in the XXXX estimate was a XXXX XXXX {$17.00}, XXXX ) of the loan amount in points in addition to the {$890.00} from loanDepot. The original locked fixed rate of 3.5 % loanDepot promised with XXXX down was simply not true, and they would not honor it. This is a deceptive lending practice, and it should be illegal. 

Additionally, because this was a jumbo VA construction loan ( {$680000.00} ), which it was from the beginning a year ago, XXXX now wanted 25 % on every dollar above the VA lending limit of {$540.00}, XXXX, which {$33000.00} above the other closing costs and above fees ( See Attached Estimate ). 

Our costs to close the loan went from the loanDepot estimate on XXXX XXXX XXXX {$60000.00} to the XXXX loan estimate to close on XXXX XX/XX/XXXX of {$25000.00}. 

On XXXX XX/XX/XXXX, we received another XXXX loan estimate that increased our estimated closing costs from an estimated {$25000.00} to {$59000.00} on the same 30 year VA construction loan. This loan was originally offered to us by loanDepot representatives at XXXX down, at 3.5 % locked fixed rate, zero payments during the XXXX year construction period, and a one time closed mortgage. 

This should be illegal, unethical, deceptive, and misleading lending practices and actions on the part of loanDepot. 

On XXXX XX/XX/XXXX, I finally got an XXXX  building cost calculation from Mr. XXXX of loanDepot ( See attached ). Even on this document, he had to call XXXX to get clarification before he could explain it to me, and had to hand write in some of the calculations and additional costs that we were being informed of for the very first time during this 14 months processing time. 

Because of loanDept 's unqualified representatives ; this lengthy, cumbersome, uncoordinated, deceptive, and misleading process, the cost to build our home increased from {$480000.00} on XXXX XX/XX/XXXX to {$570000.00} on XXXX XX/XX/XXXX had it closed as it was originally estimated in 45-60 days.

In fact, the loanDepot loan consultant falsely told us the lending companies suspended the VA CP lending program during the COVID 19 pandemic, but his manager later corrected that information by informing me the the VA appraisers were experiencing difficulties coordinating and conducting appraisals for draws. We required a VA appraisal for land and a construction plan, which had limited to no exposure to COVID 19. This was yet again a false and misleading statement coupled with misrepresentation of the actual facts of the matter. 

In closing this complaint statement, on XXXX XX/XX/XXXX given the recent and significant financial adjustments made to our original loanDepot estimate and disclosure to the XXXX estimates and disclosures, we were left with no viable option but to withdraw our loan application. If we were provided this information by loanDepot 's representatives last year when we contacted them, we would not be in this predicament at this time. 

We now may loose the land contract again that has expired, and are having to start this process over again after wasting 14 months of our time and life dealing with a company that should be band from offering this loan product to future consumers. 

Moreover, they should be held liable to compensate us the harm they have caused our family during this time ; to include restitution for the pain, emotional distress, mental anguish, personal embarrassment and adverse impact on our word and credibility with the seller, our attorney, the builder and the community we will be residing. 

Thanking you in advance for your assistance in helping us address this grave injustice to us as a veteran family trying to build our retirement home. 

Best Regards, XXXX XXXX XXXX XXXX