Consumer complaint received 2023-10-03 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Application denials
Company: LD Holdings Group, LLC
State: NJ

Complaint narrative:
XX/XX/XXXX Subject : Urgent : Request for Investigation into Unfair Mortgage Application Rejection by loanDepot Dear Consumer Financial Protection Bureau ( CFPB ) Team, I am writing to bring to your attention a concerning issue I have encountered with loanDepot, a mortgage lender. Over the past year, I have faced an inexplicable rejection of my mortgage application despite having substantial funds in my bank account, a down payment several times the required amount, and an annual income exceeding {$400000.00}, resulting in a debt-to-income ( DTI ) ratio well below 30 %. 

Upon closer examination of the process, it has become apparent that loanDepot, in collaboration with a builder, has formed a mutually beneficial partnership. I believe it is imperative for the CFPB to investigate how this joint venture operates, as it appears that all aspects of the mortgage application process, including application submission, underwriting, and funding, are conducted entirely within loanDepot 's systems. Their joint venture company seems to lack the capacity to independently conduct mortgage operations, instead fostering mutual interests to pursue unreasonable additional profits. 

The financial crisis of XXXX taught us that allowing such irregular and non-compliant business practices to flourish within an expanding market can severely impact our financial system during economic fluctuations. This is precisely why the CFPB was established. The CFPB has a responsibility to conduct a thorough investigation, including examining the legality of their collaborative terms that restrict homebuyers from seeking mortgages from other lenders. In our case, loanDepot 's unjustifiable reasons for rejecting the loan conveniently facilitated the builder 's improper operations. The irregular and illegal practices of loanDepot are at the XXXX of the losses I have incurred. 

I kindly request that the CFPB launch an investigation into this matter to ensure fairness, legality, and transparency within the mortgage lending industry. I am willing to provide any necessary documentation and information to support this investigation. 

Furthermore, what is even more alarming is that loanDepot not only failed to conduct the necessary investigation and rectify the situation but also resorted to hiring lawyers to threaten their clients. In the lawyer 's letter, numerous basic errors are evident, including incorrect spelling of my name, misidentification of my gender, and even a substantial discrepancy in the application date mentioned compared to the actual application date of my case. These circumstances demonstrate loanDepot 's complete lack of accountability, reflecting their disregard for both their customers and the CFPB. 

These facts underscore the imperative need for a comprehensive investigation into loanDepot by the CFPB. 

XXXX. I urge the CFPB to conduct a thorough legal investigation into the restrictive terms imposed by loanDepot and their collaborating builder on customers who seek to use mortgage services. 

XXXX. It is essential for the CFPB to investigate loanDepot 's underwriting practices for any non-compliance with industry standards and regulations. 

XXXX. I also request the CFPB to scrutinize loanDepot 's standard process for handling CFPB cases. There is evidence to suggest that loanDepot consistently fails to meet the standard XXXX response time required by the CFPB for each case. Instead, they delay responses irresponsibly for up to 60 days, employing these tactics to influence customer reactions. This behavior indicates an abuse of regulations to the detriment of customers. 

These actions are crucial to ensuring transparency, fairness, and accountability within the mortgage lending industry and protecting the rights of consumers like myself. 

Thank you for your prompt attention to this critical matter. Your assistance is greatly appreciated, and I look forward to a swift resolution. 

Sincerely, XXXX XXXX XXXX

Company response to consumer: Closed with explanation