Consumer complaint received 03-06-2017 about Mortgage (FHA mortgage) with K. HOVNANIAN AMERICAN MORTGAGE, LLC (TX).
Issue: Credit decision / Underwriting

Complaint: My complaint is we changed lenders 30 days prior to closing. The 1st Lender that we had requested a deposit that was unreasonable and was not performing in a manner that my husband and I thought that would get us closed in the timeline that was discussed and agreed upon. Therefore we found another lender that could and did meet our needs. XXXX refused to work with our new XXXX therefore they decided we could n't get the home if we were going to use someone else. Therefore they would not give us our earnest money back. 
We gave XXXX approx XXXX and we only requested our earnest money to be returned. 

I have all emails from the builder. Its not allowing me to attach the emails. 
Good morning XXXX, I just want to re-cap yesterday 's decision. 

Thank you for following up from the phone call we were supposed to receive on XXXX/2016 per XXXX. We are aware with holidays approaching there were other priorities. 

Per the email that I sent on XXXX/2016 regarding our experience and the return of our earnest money since XXXX do not want to work with our new lender since the denial of our original outside lender. XXXX contacted XXXX back up lender spoke with XXXX and she stated she could n't make any promises. XXXX stated she would have to pull the credit and my score was already below requirements due to the recent collections. Therefore I would n't let them pull it again to drop it even lower and XXXX already informed me there were no guarantees that we can my score up to requirements by closing XXXX/2016. Does n't make good business sense to have them to pull it again when the challenges were made known. 

Per the Seller to the Buyer verbal conversation here are our options. 

1. Drop current loan officer and work with XXXX professional XXXX to help us. But if he ca n't help us he wo n't string us along. 

2. Wait 3 more months and they would credit us back with the purchase of another home. 

3. Keep our current lender and she would require us to put down even more than we have already put down. {$2000.00} earnest XXXX in upgrades. But you do n't recommend that because he is an outside lender and it 's possible be wo n't close us and we would lose more money. 

Buyer to response to Seller : 1. Refuse to drop current loan officer to do bad business as XXXX has done to my family. Makes no sense and I have an approval already. I work every day I would have to completely start the process all over again. I told XXXX how inconvenient that would be for a 3rd time. She simply thinks it would be just sending over a file. It 's never that easy. There are always questions and forms to fill out and task to do. I have a stressful job it 's no way I can start this process all over again! 

If I would have never ever sent an email addressing my concerns XXXX intention was to take my money and move on to the next customer because I never received a phone call per my request for options until yesterday. 

2. After XXXX we will not have shelter waiting 2 or 3 months is not an option. I paid the collection on last week waiting on collection to be removed and I will be rapid re-scored. 


3. I refuse to give XXXX another dime of our hard earned money. Put more money down so there can be a reason to take that too. For it to be stated " I do n't recommend '' that by the seller lets you know that would n't be a good business decision. I totally disagree the way XXXX is n't acting as though this is one of the biggest decisions of a lifetime. XXXX ca n't make the decision what is best for me and my family. 


End Result from Seller : We 'll that 's all that I can do for you and I wo n't give your earnest back. 

End Result from Buyer : Will contact CFPB to file a complaint due to a couple of violations that my eye can see. Seller was informed on yesterday that I will contact CFPB :

Company response to consumer: Closed with explanation