Consumer complaint received 2020-06-22
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: United Shore Financial Services, LLC (FL)

Dear Sir or Madam On XX/XX/XXXX my wife and I flew to California to close this cash out refinance after receiving a clear to close e-mail from XXXX XXXX at XXXX XXXX XXXX. After numerous delays and errors by all parties involved in this transaction the deal was ready to finally close. As you will see it didn't close as a direct result of negligence, incompetency and failure to disclose pertinent information by United Wholesale Mortgage ( UWM ) and XXXX XXXX XXXX. I have been a XXXX XXXX XXXX in Florida for XXXX years and never have I seen such a disorganized, negligent and unethical group of participants in a real estate transaction. 

As a result of the failure to fund this loan as agreed upon, formal complaints will be filed with the licensing boards of all parties involved in this transaction as being guilty of negligence, lack of ethical behavior, incompetence, lack of supervision and failure to perform their fiduciary duties to name a few. Mistake after mistake with no apparent communication between these companies led to delay after delay ultimately resulting in financial loss to the claimant as well as the failure to fund the loan. As states begin to open up and government agencies begin to get back to normal we will begin the complaint process as well as pursuing any legal remedy available to us. The companies involved in this disgraceful fiasco are : XXXX XXXX XXXX, United Wholesale Mortgage ( UWM ), XXXX XXXX XXXX XXXX XXXX XXXX. 

Below is a brief summary most of which is probably not in any files the above companies might have on this transaction. I will include an e-mail timeline showing the disorganization and overall incompetence of the various parties whose delays ultimately sabotaged this deal. 

The deal is blown due to unethical behavior on the part of XXXX XXXX of XXXX XXXX XXXX. 

At no time did UWM or XXXX XXXX XXXX disclose or mention that XXXX XXXX was going to require employment reverification after XX/XX/XXXX. With this critical information never disclosed, on XX/XX/XXXX my wife signed up for a VOLUNTARY 30 day leave of absence ( VLOA ) after being assured by XXXX XXXX, Director of  Sales & Development at XXXX XXXX XXXX that he had gone up the chain of command at UWM and confirmed that if we remediated the termite issue and completed roof repairs the loan would be closed and funded immediately. On XX/XX/XXXX the termite and roof clearance letter was received and we immediately e-mailed XXXX XXXX, CEO of XXXX XXXX XXXX that we were ready to close immediately. Again, another unnecessary delay until XX/XX/XXXX when the notary arrived and we signed all documents. After all the delays, errors, negligence, incompetence and failure to perform fiduciary duties by all parties involved, the deal was done. Then it wasn't. A deal that was supposed to close in early XXXX at the latest now got caught up in the Covid-19 hysteria and overreaction because my wife chose to do the right thing after being assured we were in the clear. Had we not been lied to by XXXX XXXX, my wife would not have volunteered to take leave and jeopardise this deal. To be clear, she is not laid off and is still an employee at XXXX XXXX. She will be back to full time employment as of XX/XX/XXXX. Why doesn't anyone know what they are doing? 

The Property In XXXX my wife and her brother inherited the home at XXXX XXXX XXXX, XXXX, CA from their parents. This home has no mortgage and is free and clear from any liens on the property. The names on the deed are XXXX and XXXX. My wife 's parents were very poor and were unable to always make necessary repairs to the home but the home was completely functional and livable and we were well aware of the repairs and upgrades needed. This home has been in the family for over 40 years so again, we were well acquainted with what needed to be done. 

In late XXXX my wife 's brother decided he no longer wanted to be a part of this house and wanted us to buy out his 1/2 of the home. On XX/XX/XXXX we began working with a representative at XXXX XXXX XXXX in XXXX XXXX promising a 21 day closing and lender credits at closing!! From day 1 we made our intent very clear with XXXX XXXX XXXX that we wanted a cash out refinance to update and refurbish the home and pay brother in law his agreed upon price. We were very clear that the home was perfectly livable and structurally sound in it's current condition and we conveyed to XXXX XXXX at XXXX XXXX XXXX that our intent was to begin improvements on the home immediately after closing and we accept the property as-is. At no time from early XX/XX/XXXX through XXXX and into XXXX was there ever a mention of any contingency or inspection that needed to be addressed and remedied. This included the period from XX/XX/XXXX when the " first '' appraisal was provided to XXXX XXXX XXXX and UWM to XX/XX/XXXX when we were " cleared to close ''. Clearly, nobody at UWM bothered to even look at the appraisal until we were ready to close and now a termite inspection is demanded and eventually roof repairs would need to be completed before funding. WHY WAS THIS NOT DISCLOSED PRIOR TO THE SCHEDULED CLOSING DATE? Again, throughout this entire process there was never a mention of any inspections or contingencies. If they were necessary they were not ever disclosed!! This incompetence and negligence resulted in this deal being blown up after all the unnecessary delays, errors and omissions from all parties involved in this deal. We spent over {$1000.00} traveling to California for a closing that did not occur on XX/XX/XXXX because someone at UWM failed to disclose that a termite inspection was needed. ANY REPAIRS AND REMEDIES EASILY COULD HAVE BEEN TAKEN CARE OF WEEKS BEFORE SCHEDULED CLOSING IF ANYONE AT UWM or XXXX XXXX XXXX HAD BEEN PAYING ATTENTION AND DOING THEIR JOB. Throughout this process we provided everything requested from us immediately. 
To make matters worse, UWM and XXXX XXXX XXXX THEN TRIED TO COVER THEIR BEHINDS BY HAVING THE APPRAISAL COMPANY ALTER/REWRITE THE ORIGINAL APPRAISAL TO THE BENEFIT OF UWM BY NOW STATING A TERMITE INSPECTION WAS NEEDED WHEN THE ORIGINAL APPRAISAL MADE NO MENTION OF A TERMITE INSPECTION. This was done XX/XX/XXXX the day AFTER we were supposed to close and resulted in financial harm to the claimant. This is disgraceful, possibly illegal and most likely appraisal fraud. By this time we are now furious and completely disgusted by all parties involved. We tried contacting UWM directly but were told we had to go through our mortgage broker. I wanted to know what needed to be done and they kept delaying with any answers. XXXX wouldn't return calls and finally, after 3-4 tries I got someone at UWM to tell me the deal wasn't being funded because a contingency wasn't addressed. WHAT?? Ultimately XXXX said we need a termite inspection. Really, when were you going to let us know?? We know the house is old and we already let everyone know we were going to refurbish the house and most likely at it's age it probably has termite damage. So all you need is the termite inspection and we can proceed to closing, correct? Yes they just need the inspection report and nothing is mentioned about remediation and repairs. Days again are being wasted by this failure to communicate between XXXX and UWM and to clearly let the client know what they want. Ultimately after wasting many precious days we had the home tented and an entire new roof put on because we were assured by XXXX XXXX we were in the clear. We got screwed!!! Money was spent on roof repair and tenting to the tune of $ XXXX which we are now out because of lies, neglect, ignorance etc. This is completely unacceptable particularly when we made it perfectly clear from day 1 we accept the house as-is. This was not a sale, it was a cash out re-fi by the current owners. 

Promotion of Fraud Once the deal was blown up, XXXX XXXX was searching for other forms of income and suggested taking a look at our IRA's,401k and Roth to see if they would cover the necessary income needed. Both XXXX XXXX and XXXX XXXX told me on separate occasions what I should do is agree to withdraw funds for three years out of these accounts and once we got our money from UWM to immediately stop the withdrawals. They were suggesting I deceive UWM and the Federal Government which I was not comfortable with. Fortunately, the numbers didn't add up and they dropped this scheme.This is completely unethical and I'd like to know who is aware of this practice and are participants in this charade as 2 people at XXXX XXXX XXXX were promoting it and claimed many clients have done it. This was outrageous! 

The e-mail trail of negligence, incompetence, miscommunication etc. 

What follows is the disgraceful, unprofessional and negligent behaviors of all the participants in this transaction. Delay after delay, mistake after mistake wasting precious time ultimately sank this deal as unbeknownst to everyone there was a ticking time bomb that would blow up in the claimants face due to a change by XXXX XXXX and Covid-19. None of these delays are acceptable behavior by any of these so-called professionals and the only party damaged by this ridiculous sequence of events is the claimant out over {$18000.00} plus the {$370000.00} approved and cleared to close loan. It clearly appears that neither UWM or XXXX XXXX XXXX had an organizational checklist or flowchart to follow throughout this deal. Incredibly, every time we were told that all the documentation we needed to provide was accepted and we don't need anything else invariably, someone remembers they need something else days or weeks later leading to changing the loan amount and lender credits while delaying closing the loan. UWM approved the loan 3 or 4 times only to come back and move the goalposts. 

Below is a summary of the e-mail chain. All e-mails are available if requested. 

XX/XX/XXXX Loan process starts with XXXX XXXX at XXXX XXXX XXXX. Promised 21 day closing and over {$4000.00} in lender credits XX/XX/XXXX All documents have been submitted and accepted XX/XX/XXXX loan processor requests mortgage payments for primary residence and subject property. Completed XX/XX/XXXX XX/XX/XXXX loan is registered with United Wholesale Mortgage XX/XX/XXXX loan approved at {$370000.00} with lender credits $ XXXX XX/XX/XXXX XXXX XXXX to order appraisal but says it's only good for 30 days. Need to check with brother in law as to signing availability as he travels for work XX/XX/XXXX Congratulations your loan is now in underwriting XX/XX/XXXX New conditions from lender ... DL, HOA dues, credit inquires. Doesn't the loan processor have a checklist she should be following? This is requested 3 weeks after the loan process was started. Request was completed immediately. 
XX/XX/XXXX Loan has been approved ... ..Again. Need appraisal and copy of will. XXXXX can sign around XX/XX/XXXX XX/XX/XXXX Trust document requested by XXXX XXXX Completed XX/XX/XXXX Why so long to request this document? 
XX/XX/XXXX Loan has been approved ... AGAIN! Lender requests conditions need to be cleared : appraisal, picture DL, explanation of credit inquiries, HOA dues for primary residence. All requested items e-mailed XX/XX/XXXX to XXXX XX/XX/XXXX Appraisal ordered XX/XX/XXXX All loan documents accepted. No further documents requested XX/XX/XXXX XXXX requests credit inquiry explanation ... again XX/XX/XXXX XXXX acknowledges she had already received credit inquiry request on XX/XX/XXXX XX/XX/XXXX XXXX writes we are close to Clear to Close documents. Let 's lock in the rate. Current rate 3.75 % with a {$3900.00} Lender Credit XX/XX/XXXX XXXX requests homeowner insurance be changed to our name and updated XX/XX/XXXX XXXX REQUESTS BROTHER IN LAW CONTACT INFORMATION TO ARRANGE SIGNING XX/XX/XXXX Brother in law confirms speaking with XXXX. No mention of his wife needing to sign any documents. 
XX/XX/XXXX " First '' appraisal report delivered. NO MENTION OF ANY CONTINGENCY ISSUES OR INSPECTIONS NEEDED! 
XX/XX/XXXX Insurance quote provided to XXXX but insurance company needs a closing date/effective date. When is the closing? 
XX/XX/XXXX XXXX says start the insurance now to " speed things up '' When is the closing date? 
XX/XX/XXXX XXXX asks if my brother in law is married. Although she failed to ask him herself I confirm he is married. Again, no mention brother in laws wife needs to sign anything! Brother in law signing is confirmed for XX/XX/XXXX. 
XX/XX/XXXX New Closing Disclosure arrives for {$370000.00} LENDER CREDIT REDUCED to {$3500.00} XX/XX/XXXX XXXX informs me she asked for wrong information from insurance company and needs name of company and policy number. Completed XX/XX/XXXX XX/XX/XXXX New Closing Disclosure arrives with Loan Amount REDUCED to {$360000.00} Lender Credit REDUCED to {$3400.00} XX/XX/XXXX Lender requests to see assets of {$3700.00} for funds to close. Completed XX/XX/XXXX XX/XX/XXXX e-mail brother in law to confirm signing tomorrow as neither XXXX XXXX XXXX or Lawyers Title have communicated confirmation XX/XX/XXXX Lawyers Title e-mails me informing me brother in law 's wife has to sign an interspousal deed. XXXX 's wife just returned to XXXX XXXX XXXX literally 3 days ago and was easily available to sign when she was in XXXX but nobody let anyone know she had to sign anything! 
XX/XX/XXXX I let brother in law know and he says someone dropped the ball and did not tell him wife had to sign. Document must be notarized. 
XX/XX/XXXX brother in law signed his documents and his wife will sign in the consulate in XXXX when brother in law returns to XXXX XXXX. This was after XXXX claimed the document needed to be signed now! I reminded her it was either XXXX XXXX XXXX or XXXX XXXX that completely dropped the ball on this issue. 
XX/XX/XXXX Congratulations your loan is now cleared to Close!! Closing  scheduled for XX/XX/XXXX. Expect notary to call you with signing details. 

On XX/XX/XXXX we are in XXXX California and we hear nothing from anybody. XXXX XXXX XXXX will not answer the phone and I leave several voice messages. XXXX XXXX won't answer the phone. I eventually get someone at UWM to at least look at my file and tell me what's going on. This was after calling UWM 3-4 times and being told we won't talk to you and you need to call your mortgage broker. I told the last person I spoke with at UWM my broker won't answer the phone and we were supposed to close today. She let me know she wasn't supposed to do it but she looked at my file and saw there was a contingency that required action before the loan would be funded. WHAT CONTINGENCY??? She agreed she would try to get in touch with the mortgage broker and at least have them have the decency to call me. 

XX/XX/XXXX A new revised/altered appraisal arrives with changes made to cover the behinds of UWMXXXX XXXX XXXX by adding a new paragraph stating there should be termite treatment and wood replacement. This paragraph did NOT appear on the appraisal received XX/XX/XXXX and is a clear error and omission by the appraiser, XXXX XXXX XXXX and UWM for this critical information to be added at a later date ultimately causing financial harm to the claimant. 
XX/XX/XXXX XXXX XXXX of XXXX XXXX XXXX sends a vague message about a pest inspection but mentions nothing about possible termite remediation and wood replacement As expected in an old home there was termite damage and some wood needed replaced. We communicated time after time throughout the entire process we were aware of repairs that needed to be done and a sizable chunk of the refi money was going to repair and upgrade the home. Now we are told that UWM demands the house be tented and certain wood be replaced or they won't fund the loan. Why were we not told of this weeks ago when these issues could have easily been remedied and we wouldn't have wasted our time and money to fly to California to be blindsided. We are now completely furious and have no confidence anyone involved in this deal is competent. Everyone from XXXX XXXX XXXX, to the appraiser, to XXXX XXXX to UWM have made mistake after mistake costing us valuable time and money. We are willing to get the repairs done immediately if we are guaranteed that UWM will fund the loan when the job is completed. XXXX XXXX ( XXXX 's supervisor ) said he took it up the chain of command at UWM and was assured if we complete the termite remediation and replace the wood rot the deal would be funded immediately. Tenting and a new roof were completed XX/XX/XXXX and the clearance report was issued XX/XX/XXXX. We are ready to close IMMEDIATELY! 

XX/XX/XXXX Still another Closing Disclosure arrives with Loan Amount LOWERED AGAIN to {$350000.00} Lender Credit reduced to {$2700.00} XX/XX/XXXX XXXX XXXX confirms if termites are exterminated and the wood items on the pest report are cleared we will be ok to proceed with funding. We order the termites exterminated and the required wood replaced as stated in the termite inspection report. Both jobs completed by XX/XX/XXXX XX/XX/XXXX e-mail sent to XXXX XXXX CEO of XXXX XXXX group stating all repairs and tenting are complete and clearance has been received we are ready to close!!! 
XX/XX/XXXX Still ANOTHER Closing Disclosure with loan amount {$350000.00} and Lender Credit REDUCED to {$280.00} Ridiculous On XX/XX/XXXX a notary came to our home in Florida and we signed all the closing documents. At no time between XX/XX/XXXX and XX/XX/XXXX did either UWM or XXXX XXXX XXXX convey or communicate thaXXXX XXXX XXXX was changing it's guidelines and employment must be reverified. Due to this lack of communication and the assurance we were " in the clear '' as XXXX XXXX said, my wife took a voluntary 30 day furlough from her flight attendant duties at XXXX XXXX. She is still an active employee and was not laid off. She will be back full time on XX/XX/XXXX. This is infuriating as this furlough was completely voluntary and if anyone at either UWM or  XXXX XXXX XXXX had said anything she wouldn't have taken it and this deal would have been funded AS PROMISED. 

XX/XX/XXXX Still another Closing Disclosure arrives with loan amount back up to {$370000.00} and lender credit of {$300.00} Closing date XX/XX/XXXX. As usual neither UWM or XXXX XXXX XXXX have a clue as to what each one is doing. 
Amazingly, as our loan amount and lender credit were being reduced the commission paid to XXXX remained steady and in fact has now been increased as of this last bogus Closing Disclosure. 

It's clear in reviewing this transaction that we did everything asked of us in a timely fashion while everyone else involved on the " professional '' side was making mistakes and causing delays that ultimately blew the deal. As mentioned above this bungled deal has cost the claimant $ XXXX in repairs that were not necessary as the owners were fine with the home as-is but were willing to do the work in order to close the deal. Cash out refinances generally do not require work done in advance as the whole purpose of the loan was to use equity in the home to upgrade the home. Everyone involved in this transaction should be embarrassed. It has been a complete disgrace and the only one damaged is the client.