Consumer complaint received 2025-12-15 00:00:00
Product: Mortgage — FHA mortgage
Issue: Closing on a mortgage — Delays with the closing process
Company: AMERICAN FINANCING CORPORATION
State: PA

Complaint narrative:
XXXX. DECEPTIVE APPRAISAL DISCLOSURE & MISREPRESENTATION OF APPRAISAL STATUS On XX/XX/year>, American Financing Corporation provided me with a loan document titled " HUD Appraised Value Disclosure. '' This form stated that " the appraiser has assigned a value of {$180000.00} '' to the property. Their borrower portal also showed an appraisal order date around XX/XX/year>. When I directly asked whether the appraisal had been completed, the lender avoided answering, which reasonably led me to believe the appraisal was finished and the value was sufficient for the loan. Relying on this representation, I proceeded with the purchase contract and deposited {$1000.00} in earnest money AT THE LENDER 'S REQUEST. 
This representation was false. The appraisal was not ordered in XXXX. It was not ordered until after I filed my CFPB complaint on XX/XX/year>. The actual appraisal report was issued XX/XX/year> ( effective XX/XX/year> ) with a value of {$180000.00}. I was told by my loan officer Umed that he ordered the appraisal on XX/XX/XXXX contradicting what the portal stated. The XXXX disclosure falsely implying a completed appraisal constitutes a material misrepresentation that induced financial commitment and contractual reliance. 
XXXX. DELAYED APPRAISAL ORDERING AFTER APPLICATION & AFTER COMPLAINT ( XXXX 2025 ) I applied for the FHA mortgage XXXX XX/XX/year>. Despite the misleading XXXX disclosure and portal entries, the lender did not order the appraisal until XXXX, more than six weeks after my application and only after my XX/XX/XXXX CFPB complaint. This delay created a last-minute rush and resulted in the XXXX identifying minor " subject to '' repairs just days before the scheduled XX/XX/XXXX closing. The primary remaining repair is a small exterior scrape-and-paint item on a XXXX home. Current weather conditions ( XXXX temperatures and XXXX inches of snow ) make proper lead-safe painting impossible. Had the appraisal been ordered in XXXX, this could have been resolved without crisis. 
XXXX. STALLING THROUGH EXCESSIVE & UNNECESSARY REPAIR DEMANDS ( XX/XX/year> ) The lender is now demanding XXXX XXXX XXXX  for a minor exterior repair estimated at approximately {$1500.00}. They have further stated that unless the exterior painting is completed within 30 days, the deal will fall through. 
This ultimatum is unreasonable and contradicts XXXX  XXXX XXXX, which allows : * Appraiser-estimated repair escrows for items under {$5000.00} * Weather-related deferrals for exterior repairs that are not safety or habitability issues, with a single post-closing XXXX verification. 
Forcing completion of exterior painting in freezing/snow conditions risks adhesion failure and violates lead-safe standards. The 30-day ultimatum is not only impractical but also inconsistent with FHA 's own guidance. It appears designed to stall or sabotage the transaction, especially given its timing after my prior CFPB complaint and improved Loan Estimate.

VIOLATIONS A. Unfair, Deceptive, or Abusive Acts or Practices ( UDAAP ) - Misrepresenting appraisal status and value.

- Inducing financial reliance ( earnest money, inspections ) based on false information.

- Postcomplaint stalling and unreasonable conditions that jeopardize closing. 
B. Truth in Lending Act ( TILA ) - Providing a premature and inaccurate HUD Appraised Value Disclosure stating a value that did not exist. 
- Misleading the borrower about the status and viability of the loan. 
XXXX. FHA Guidelines Violations - Failure to order appraisal promptly after application.

- Ignoring FHApermitted repair escrow and weather deferral options.

- Imposing unnecessary contractorbid requirements inconsistent with Handbook XXXX. 
HARM CAUSED * Risk of losing {$1000.00} earnest money if delays or ultimatum cause seller frustration or cancellation * Potential inflated XXXX  XXXX costs due to weather constraints * XXXX XXXX  and pressure on both buyer and seller * Contract deadline of XX/XX/year> leaves no time to switch lenders

Company response to consumer: Closed with explanation