Consumer complaint received 2026-01-26 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Application denials
Company: CARRINGTON MORTGAGE SERVICES, LLC

Complaint narrative:
I am submitting a complaint about Carrington Mortgage Services, LLCs handling of my cash-out refinance application, which was processed for approximately XXXX months and then denied at the end of the process based on a foreseeable underwriting requirement that Carrington should have identified and communicated much earlier. 

I disclosed on the initial intake call that I would be relocating from [ ORIGIN ] to [ DESTINATION ], XXXX and that the refinance proceeds were intended to help fund that move. The loan officer acknowledged my relocation and discussed closing logistics related to [ DESTINATION ] ( including mentioning a meeting with a loan officer at the XXXX XXXX in [ DESTINATION ] before closing ). Carrington continued to process the loan for months, directed us to complete appraisal-driven repairs as needed to obtain financing, and repeatedly had us remediate cosmetic findings. After we completed the repairs at significant cost and provided current pay stubs, Carrington denied the loan stating that my XXXX income could not be used without the 2 year history. 

Timeline and key facts XXXX : Initial call with Carrington loan officer [ LENDER ]. I explained we were moving to [ DESTINATION ] and using refi proceeds to fund the move. [ LENDER ] acknowledged this and discussed [ DESTINATION ] -related closing logistics ( XXXX XXXX in [ DESTINATION ] ), indicating he understood I would be living in XXXX by closing. 

XXXX / XXXX : Carringtons selected appraisal company ( [ REDACTED ] ) requested payment ; I paid {$570.00} for the appraisal. 

XXXX : [ LENDER ] emailed : Per the appraiser, there are a few items that need to be addressed in order to obtain financing, and provided an image excerpt from the appraisal. 

XXXX to XXXX : We hired a contractor and performed repairs. 

XXXX : I began employment with [ EMPLOYER ] XXXX ( XXXX employing entity ; paid in CAD ). 

XXXX : We informed Carrington ( [ LENDER ] and [ LENDER 2 ] ) repairs were complete ; Carrington initiated another appraisal at no extra cost. 

XXXX : [ LENDER 2 ] stated additional repairs were required and provided the same confusing image excerpt ; I confirmed a finalized list of repairs with her. 

XXXX to XXXX : We hired a contractor and completed additional cosmetic repairs to satisfy the appraisal findings. 

XXXX ( secondary issue/ compliance error ) : I received an Adverse Action Notice in Carringtons portal : a Statement of Credit Denial, Termination, or Change showing the application was withdrawn. Neither borrower withdrew the application. The form had blank sections for reasoning and credit data. The form appeared duplicated : three pages addressed to me and three pages addressed to [ PARTNER ]. 

XXXX : In response to my inquiry, [ LENDER ] emailed : I am so sorrysomeone in compliance inadvertently did XXXX to worry, I will get new disclosures out to you today. I have been assured by my manager that this will not cause a delay. 

XXXX : Carrington issued new disclosures under a new loan number ( [ NEW LOAN # ] ) after the compliance mistake. 

XXXX : We re-signed the new disclosures electronically. 

XXXX : We informed Carrington the repairs were complete. 

XXXX : [ LENDER ] requested recent pay stubs ; we provided them. 

XXXX : [ LENDER ] wrote : Per the underwriter, Carrington will not be able to get your loan approved : We are not able to use the foreign income without the 2 year history, and provided the relevant guideline screenshot. 

Why Im complaining Carrington knew from the start that I was relocating to XXXX and would be working for a XXXX entity. At minimum, Carrington should have identified early in the process whether my XXXX employment income ( paid in XXXX ) would be eligible to qualify for the refinance, and if not, Carrington should have communicated that promptlybefore directing months of collateral-related activity and requiring repeated cosmetic repairs. 

Instead, Carrington : Proceeded for XXXX months and required repairs to obtain financing, causing significant out-of-pocket costs ; and Later denied the loan on the basis that my XXXX income could not be used without a two-year historyan issue that was foreseeable given my disclosed relocation and the fact that my XXXX employment began on XXXX ; and Issued an incorrect/unsupported Application withdrawn adverse action notice ( with blank reason fields ) that the loan officer attributed to a compliance error, requiring re-disclosure under a new loan number. 

Harm and costs {$570.00} USD appraisal fee paid. 

{$19000.00} USD paid to a contractor to remediate appraisal findings over two repair periods. 

Significant wasted time and disruption to our relocation planning and finances due to late denial.

Company response to consumer: Closed with explanation