Consumer complaint received 2025-09-08 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — Changes in loan terms during or after closing
Company: HILLTOP HOLDINGS, INC
State: SC

Complaint narrative:
This CFPB complaint is concerning my formal Notice of Grievance.

Summary of Grievances 1. Nature of Suspected Noncompliance The grievance asserts potential tax reporting concerns arising from alleged misrepresentations in loan disclosures, securitization of the mortgage into an investment vehicle, and related trust arrangements. 
It raises questions about income reporting, ownership rights, and potential unjust enrichment or fraudulent practices that could have tax consequences for the borrower and for entities involved in securitization and investment vehicles. 

XXXX. Periods Involved XX/XX/XXXX through present, including loan origination ( closing XX/XX/XXXX ) and subsequent years.

3. Key Facts ( highlights and context ) Closing disclosures and disclosures at/around closing contain alleged misrepresentations or changes made at the closing table, with claims that the borrower did not have XXXX days to review before signing at the closing table. Alleged failure to disburse actual loan proceeds to the borrower, despite payments being demanded and made for over XXXX years. A consumer credit transaction checkbox appearing on application forms contrasted with an unchecked Mortgage Loan box on the application forms, suggesting possible mischaracterization of the instrument. Claims of securitization of the mortgage into an investment vehicle, with a XXXX  referenced ( XXXX ) and the involvement of the XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX as investor/servicer, and XXXXXXXX XXXX XXXX as the investment vehicle. The grievance asserts borrower payments fund the investment instead of servicing a traditional loan. Borrower is also unregistered investor of investment contract. Alleged unauthorized alterations to the promissory note after execution, including an endorsement to XXXX XXXX and a signature attributed to XXXX  Senior Vice President XXXX XXXX who was not present at closing. Alleged appraisal irregularities, including biased or pre-determined outcomes, use of a single builders properties for comparables, and missing data/methodology to support adjustments. Settlement statement mathematics alleged to be inconsistent or manipulated, with several described discrepancies in the XXXX/Settlement Statement. Claims of statutory and regulatory concerns ( TILA/RESPA, Regulation Z, USPAP, XXXX, Dodd-Frank ) alleged to have been violated in ways that could affect tax reporting and the recognition of income, ownership interests, and obligations. Assertions that securitization and related structures diverted borrower funds or profits into investment vehicles, potentially impacting the borrowers tax reporting and resulting in unjust enrichment.

4. Evidence Attached or Available for Review Formal Grievance Letter dated XX/XX/XXXX ( accompanying this submission ) XXXX  Report dated XX/XX/XXXX Copy of Promissory Note ( for comparison of negotiations and alleged alterations ) XXXXSettlement Statements Closing Disclosures Mortgage Appraisal Analysis other additional items referenced in the Grievance Letter 5. Source of Information and Basis for Belief Information drawn from borrowers loan documents, mortgage audit/review, independent mortgage analysis, and related records.

6. Relationship to the Information XXXX XXXX is the borrower/grantor and has firsthand knowledge of the documents and events described in the grievance and attachments.

7. Requested Action Please review the information for potential tax noncompliance and determine the appropriate action under applicable law. If warranted, contact mortgage lender and servicer and consider coordination with other enforcement bodies as appropriate. 

Information has been sent to the Internal Revenue Service, U.S. Department of Housing and Urban Development ( HUD ) and other federal and state agencies.

Company response to consumer: Closed with explanation