Consumer complaint received 2025-03-26 00:00:00
Product: Mortgage — FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Changes in loan terms during the application process
Company: BROKER SOLUTIONS, INC.
State: FL

Complaint narrative:
I applied for a mortgage loan with New American Funding ( NAF ) and was assigned XXXX XXXX as my loan officer. Throughout the process, XXXX repeatedly assured me that my loan was in good standing and that I would qualify. Based on these assurances, I proceeded with the home-buying process, including : Receiving a pre-approval letter for {$320000.00} Submitting an offer on a {$230000.00} home after XXXX informed me my approval amount was adjusted to {$240000.00} due to debt-to-income ( DTI ) ratio considerations Paying for an appraisal and home inspection ( totaling thousands of dollars ) Starting title work and moving forward with underwriting On XXXX [ date ], at the final underwriting stage, I was suddenly informed that my loan did not qualify due to a DTI ratio of 67 %, exceeding the threshold of 57 %. This change was due to the last-minute re-inclusion of previously disclosed debts ( student loans and an XXXX loan ) that XXXX had already accounted for earlier in the process.

This mismanagement appears to be a clear violation of the Truth in Lending Act ( TILA ) and the Real Estate Settlement Procedures Act ( RESPA ), which are designed to protect borrowers from deceptive and unfair lending practices. Specifically : 1. Misrepresentation & Failure to Provide Accurate Loan Terms ( TILA Violation ) XXXX and NAF repeatedly provided misleading information about my eligibility, my approval amount, and my debt obligations. I relied on these assurances when making financial decisions, only to have my approval revoked due to a last-minute change in how my debts were calculated.

2. Unfair & Deceptive Lending Practices ( UDAAP Violation Dodd-Frank Act ) By misleading me into believing my loan was secure, NAF caused financial harm, including out-of-pocket expenses for inspections, an appraisal, and title work. The abrupt denial at the final stage of underwriting suggests a failure to exercise due diligence and protect me as a consumer.

3. Failure to Conduct Proper Loan Evaluation ( RESPA Violation ) RESPA requires lenders to provide consumers with accurate, upfront information about their loan qualifications. Malcolms repeated assurances, despite unresolved DTI concerns, caused me to invest time and money into a home purchase under false pretenses.

Additionally, after raising concerns, XXXX ignored multiple requests for clarification, leaving me with no choice but to escalate my complaint to NAFs leadership team. I am still awaiting a response.

I am requesting the Consumer Financial Protection Bureau ( CFPB ) to investigate New American Funding for potential violations of federal consumer protection laws. Given the financial losses I have suffered due to their negligence, I also believe NAF should be held responsible for reimbursing my out-of-pocket expenses.

I appreciate your time and consideration in reviewing this serious matter.

Company public response: Company believes complaint is the result of an isolated error
Company response to consumer: Closed with explanation