Consumer complaint received 2025-06-07 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — Closing disclosure or other related disclosures
Company: TAYLOR MORRISON HOME FUNDING, INC.
State: AZ

Complaint narrative:
To Whom It May Concern, I am writing to formally file a complaint regarding the mortgage loan process I experienced with Taylor Morrison Home Funding ( TMHF ), which involved significant mishandling, delays, and apparent violations of federal consumer protection laws, including the Real Estate Settlement Procedures Act ( RESPA ) and the Truth in Lending Act ( TILA ). 

The process began in XX/XX/XXXX, when we submitted our initial loan application prior to signing the purchase agreement for our new construction home. During pre-approval conversations, the original loan officer expressed repeated concerns about affordability, stating : You can qualify, but I have no idea how you are going to afford this house, and Youre going to have to sell your house and pay off a ton of debt, but I have you qualifying with renting out your house. 

Because of these comments, we requested to work with an alternative loan officer. During conversations with the second loan officer, we expressed that my parents and husband would be purchasing the home initially, but that I would like to be added to the loan if I was able to get my credit score to qualifying standards. 

Despite submitting full credit documentation for the initial application multiple times, TMHF never moved our application into underwriting and failed to provide any disclosures, loan terms, or pricing details. This was grossly negligent, especially considering we had invested {$130000.00} as a down payment, which we were told would become non-refundable ( go hard ) after 45 days. During this critical time period, TMHF failed to deliver the conditional, non-contingent loan approval that was necessary for us to make an informed decision. 

In XX/XX/XXXX, I submitted an additional application through their credit improvement program to explore adding me as a co-borrower. However, I never received disclosures related to this application either. 

On XX/XX/XXXX, the loan officer informed me she was combining my husbands and my information into a third application, as I had achieved the qualifying credit score. During this conversation, she said, Lets talk about the elephant in the room, referring to the interest rate. When I asked for clarification, she questioned what we expected our house payment to be. I reminded her that we had yet to receive any disclosures or conditional approval. She acted surprised that we wanted our initial file moved into underwriting and after I expressed we were extremely frustrated and stressed due to our investment turning non-refundable, she repeatedly stated she would take the blame and that this was a good loan with just my husband and I on it. '' I was then told to send updated documentation to her so she could submit the file to underwriting, which we provided again. 

Disclosures were finally issued on XX/XX/XXXX. When we received them, we identified several issues : The application we were asked to sign had been manually created by the loan XXXX in XXXX using combined data from both applicants, yet we never saw this version or its disclosures until XXXX. 

The 1004 form indicated the application format as telephone, despite the fact that we submitted our original applications through TMHFs online portal. When we questioned this and requested to correct to the proper application type, we were told they always mark it telephone because they call to verify the information. We never had a verification phone call at all. 

My Social Security Number was entered incorrectly. I raised the issue immediately as I am certain this was done incorrectly when the loan officer manually entered our joint application. I also asked if a new credit pull was necessary. I was told no. However, in XX/XX/XXXX, XXXX informed me they did need to pull new credit to fix the typo, resulting in my credit score dropping below the tier threshold for better pricing, and ultimately costing us a higher interest rate. 

We signed a purchase agreement contingent on using TMHF in order to receive a seller-paid closing cost credit of nearly {$51000.00}. Despite this, TMHF charged all closing costs and discount points without issuing the required disclosures within the three-day regulatory window, a clear violation of RESPA and TILA. 

When these issues were raised during the approval process, no meaningful action was taken. We were told only that updated credit documentation was needed to proceed with underwriting. After closing on our home in XXXX, I documented our experience in the post-closing survey, and was contacted by TMHFs XXXX. After reviewing the situation, he acknowledged that a loan file must be disclosed and an approval or denial issued per regulation. He offered a verbal apology and stated that he would escalate the matter to the Senior VP of Compliance and the XXXX, noting that one or both would likely need to contact me. 

Despite follow-up to discuss this experience with senior leadership, no communication has been received from TMHF. 

In summary, TMHFs handling of our mortgage process was unprofessional, noncompliant, and harmful. Their actions, including delayed disclosures, inaccurate application data, misrepresentation of application format, failure to timely submit files to underwriting, and the subsequent financial impact to our family have had a lasting and damaging effect. These actions appear to constitute violations of federal consumer protection laws, and I am respectfully requesting the Consumer Financial Protection Bureau to investigate TMHFs conduct. 

Thank you for your attention to this matter.

Company response to consumer: Closed with monetary relief