Consumer complaint received 2021-11-01 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: Shellpoint Partners, LLC
State: VA

Complaint narrative:
To Whom It May Concern, I have had a crazy and unbelievably drawn-out ordeal with Newrez LLC . I am writing to make a formal complaint against Newrez LLC. Please allow this letter to serve as my complaint of discrimination, gender bias and failure to provide me with satisfactory service in the process of refinancing my home causing me financial hardships. 
My complaint of discrimination, gender bias, and dissatisfactory service includes the following : Refinance application was completed on XX/XX/XXXX. Newrez took 3 months and 9 days to deny my refinance loan all the while giving me emails stating that the loan was approved and closing. Leading me on that the loan was closing on XX/XX/XXXX, once we got close to the closing date everything fell apart. Processor said that underwriter 's concern was that not all the properties sold were in my name, most of the properties are in my husbands name. Husband is not on application so we cant use his capital gains income. Processor called and asked if we could add my husband to the loan. I explained to the processor that I did not need to add my husband to the loan, because I was more than qualified for this loan on my own. I emailed him the guidelines for verification of capital gains and told him that according to the guidelines I qualify for the loan on my own. After this communication with the processor and the email I sent him about capital gains guidelines and not adding my husband it was radio silence and no communication from MLO or processor from XX/XX/XXXX to XX/XX/XXXX. On XX/XX/XXXX I received an email from processor stating that the underwriter is trying to turn the file down. Per processor the underwriter stated the only 1/3 of the properties on the last two years tax returns ( XXXX XXXX ) are reflected with the borrower as owner. Her husband is not an applicant so we cant use his capital gains income. I corrected the processor that 2/3 of the properties are in my name. I also told the processor this needed to go to a manager or/and compliance this has gone too far and demanded to speak to someone that could explain to me what was going on because it seems to be an underline reason that this loan is not closed. However I didnt know that the loan was denied until XX/XX/XXXX when I received an email from the processor stating he was sorry, but the underwriter denied the loan. I received a credit denial letter dated XX/XX/XXXX. So, it looks like Newrez back dated my denial letter, because the processor was still requesting more documents on XX/XX/XXXX even though my loan was denied on XX/XX/XXXX. The postage date on the envelope is XX/XX/XXXX the same day I requested the Managers name, email and telephone number. So, Newrez issued my denial letter on XX/XX/XXXX and didnt mail it until XX/XX/XXXX, 6 days later. I was totally disappointed and disgusted because at this point the gender bias, discrimination and violations were very obvious. 


I emailed the sales manager ; he called me once he returned from vacation. I explained to him the above events. The sales manager held a meeting with the underwriting manager to review the loan and they stated the loan could be approved. The sales manager stated they would start a new loan and would have all the documents moved from the inactive account to the new loan. The sales manager requested the following items insurance policies on all my other properties and a copy of the XXXX on my husbands business who is not on the loan. I stated to him that my husband is not on the loan and I have no ownership interest in his business. The sales manager stated he had to have the XXXX information per underwriting. Once again a violation requesting and collecting specific personal information about an applicant that has no bearing on the applicants ability or willingness to repay the loan. I received a conditional approval on XX/XX/XXXX asking for the same conditions that had already been upload to the system on the first loan. Advised new processor I could not see the new loan on Newrez portal in order to upload documents and asked her to get the system updated. Sent several email between XX/XX/XXXX to XX/XX/XXXX to find out the update on the loan since I could not see the new loan on the portal and asking how long it would take. I was told still waiting. Received email from processor on XX/XX/XXXX that the underwriting stated they are unable to use my current salary ( XXXX income ) for qualifying since I am paid a variable rate. Per processor this put my debt to income over the threshold for approval. The processor asked do you have additional income that you have not provided. Is it an option to put your husband on the loan with you? Once again Newrez is trying to bully me and/or force me to add my husband to the loan.

I emailed the processor the following response : I am not sure what you mean by I get paid a variable rate. I get {$410.00} every week, except when I was out on temporary XXXX, which I disclosed with documentation. My short term XXXX was {$900.00} a week. 
I am not sure what kind of business you guys are doing over there, but this is the last straw! I have been waiting for you to make a decision and close my refinance since XXXX. Now, the Underwriter says she can't use my income... that's a joke! Newrez has been out of compliance since XXXX. I have been more than patient with Newrez. Seems like there is some other underline reason this loan has not been closed by now. I am a licensed mortgage loan officer and I know that I am qualified for this loan. So, now I will be taking this situation to the next level!!!! 


On XX/XX/XXXX I requested a copy of both of the denial letters and the application from the processor. Shortly after Newrez received my email I sent requesting the above items I received email from the Mortgage Loan Officer that has not had any communication with me for most of the process, requesting additional documentation. I emailed the MLO that I am confused the loan was denied why are you requesting additional documentation? The MLO emailed me back the loan is still active. So, after I told Newrez that I was a licensed Mortgage Loan Officer and I know that I was qualified for the loan they found a way to process and close the loan after six months. However, I never could see the loan in the portal and I found out later why I could not see the loan on the Newrez portal. Newrez imposed different conditions on my loan based on discrimination and gender bias, reducing the loan amount from {$370000.00} to {$350000.00}. The loan amount should have been 80 % of the appraisal value {$460000.00}. Once I realized what they had done it was a few days before closing at this point. I emailed the processor asking why the loan amount had been changed, with no response and this refinance had already caused me financial difficulties. So, enough was enough and I just closed the loan! 

This situation has caused me and my family financial issues. The reason for the refinance was to pay off debts and to pay taxes owned for XXXX. Due to this being a 6 month process I have had to pay additional fees and interest for the federal and states taxes along with the credit cards. Because the loan amount was reduced I did not have enough to pay off the tax bills, which I will be incurring an additional late fee. 


Considering these blatant violations and display of gender bias and discrimination and the all-around failure to provide satisfactory service. Newrez should be heavily fined to discourage them from doing this to another borrower. Nothing about my loan changed from XX/XX/XXXX to XX/XX/XXXX with the ability to approve the refinance, except I incurred more debt while waiting for the loan to be approved. However, Newrez approved my refinance once they found out I was a licensed Mortgage Loan Officer, it seems Newrez approved my loan to cover up their disgusting behavior of discriminations, gender bias and violations!! So, Newrez should have approved this loan in XXXX or XXXX and been closed by no later than XX/XX/XXXX. 


So, in conclusion I understand that this compliant will be formally investigated. I look forward to hearing from you as soon as possible to resolve this problem. Please see attached emails I have several additional emails if needed. In the meantime, if you need any further information from me, please do not hesitate to call me at XXXX or email me at XXXX. 


I look forward to hearing from you soon. 

Sincerely, XXXX XXXX XXXX XXXX : Attached emails and screen shots

Company response to consumer: Closed with explanation