Consumer complaint received 2025-12-31 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Paying off the loan
Company: LAKE MICHIGAN CREDIT UNION
State: MI

Complaint narrative:
I had a mortgage on my home through Lake Michigan Credit Union beginning in XX/XX/XXXX, with adjustable rate terms. I chose to refinance my loan through a new bank, XXXX XXXX XXXX XXXX, starting the process with them on XX/XX/XXXX. All application elements from my end with the exception of the appraisal were complete by XX/XX/XXXX. I was assigned a loan processor and she provided a close by or before date of XX/XX/XXXX. Everything including the appraisal was ready by XX/XX/XXXX, and I expected there to be closing soon as I had already requested a loan payoff from XXXX with the payoff amount good through XX/XX/XXXX. So I was expecting to close without any more financial liability with XXXX. The week of week of XX/XX/XXXX, XXXX XXXX informed me that they made an error in the paperwork not flagging the property as having an HOA, and that they needed to update the loan documents and request the appraisal company to resend a new updated appraisal. This took an additional XXXX weeks to get the appraisal back and fully approved by XXXX XXXX 's underwriting team, completed on XX/XX/XXXX. This issue and delay was entirely XXXX XXXX 's fault and I pushed hard each day to get resolution to no avail. LMCU mortgage asset team had contacted me on XX/XX/XXXX and I spoke to them advising that closing would be happening soon and the full payoff would occur. Due to the delay in closing, I had to request a new payoff statement from LMCU on XX/XX/XXXX with the payoff amount good through XX/XX/XXXX. LMCU mortgage asset team also called me on XX/XX/XXXX which I let them know about the updated payoff letter request and advising that closing had been scheduled for XX/XX/XXXX and funds would be dispersed by XXXX XXXX that week. Funds were ultimately dispersed on XX/XX/XXXX, XXXX calendar days after the XXXX day mark from when the XXXX payment was due, but this paid the full account off and was prior to the XX/XX/XXXX payoff good through date. Come to find out this month, LMCU reported both on both mine and my wife 's credit reports that the we were XXXX  days late on a payment. This has affected our credit scores considerably, my wife 's the most as she had an XXXX XXXX XXXX and is now in the below XXXX. To me, I acted in good faith through this whole process with LMCU. I called LMCU on XX/XX/XXXX and asked if they could remove the late payment from the reporting as the account was paid off, and the representative denied my request. I also asked to speak to a XXXX, with whom I was able to connect back with ( her name was XXXX XXXX on XX/XX/XXXX. She also denied my request stating " we are legally required to report this as a late payment ''. To me, this is just bad business practice, and they are being difficult and not acting in good faith because they lost the revenue from my mortgage due to me refinancing with the bank. There is also history on the mortgage with them as there were some issues in the loan disclosures and credits that were not final in the final documentation before we closed the loan in XXXX of XXXX. So I'm sure they have the account notated that I mentioned I would not use their bank going forward due to the negative experience and the lack of transparency. Nonetheless, I realize the payment was over XXXX days late, but I did act in good faith and tried to resolve with them directly, but they are not acting in good faith in return.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation