Consumer complaint received 2017-08-18 00:00:00
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — 
Company: BROKER SOLUTIONS, INC.
State: WA

Complaint narrative:
I closed on an HUD/FHA 203k rehabilitation loan with XXXX XXXX XXXX on XX/XX/XXXX. Per FHA guidelines, I had 6 months to complete the rehabilitation and XXXX XXXX XXXX was required to : select a consultant ( they did not ) ; ensure that work meets program requirements ( they did not ) ; assure all required permits are attained ( they did not ) ; and authorize inspections and approve draw payments ( they did not ). XXXX XXXX XXXX requested I approved an extension to the contract in violation of HUD/FHA policy ; I refused. At this point, XXXX XXXX XXXX had yet to identify a project manager to oversee the renovation. At the end of 6 months, on XX/XX/XXXX all work stopped as I fired and replaced the contractor, fired and replaced the consultant, and moved my family out of the house for health and safety reasons ( the home was later declared uninhabitable by the city of XXXX ). The new consultant reported to XXXX XXXX XXXX the results of his XX/XX/XXXX inspection which determined : " 4-5 month extension required due to non-supervised construction by consultant resulting in complete non-compliance and extensive code violations per city of XXXX and approved engineering. Mold remediation will be required, plumbing and electrical corrections will be required. '' The contractor estimated that the cost to remove and repair the damage to be over {$11000.00} minimum. XXXX XXXX XXXX made no effort to correct the problem or cover the estimated damage so work could continue. Weeks go by without contact while my family hemorrhages money for moving, storage, and motel costs ( this continues for 8 months ). A XXXX XXXX XXXX employee accidentally included me on an email dated XX/XX/XXXX where he states " I need to call the borrower soon ... ca n't keep ducking him ... not fair '' I finally file a complaint with HUD and they send XXXX XXXX XXXX a report dated XX/XX/XXXX that states : " The mortgage credit and/or evaluation of the appraisal report underwriting for this loan is unacceptable. Mortgagees [ the lender ] must ensure work is completed on schedule and that the workmanship is acceptablerepairs were not completed within the timeframe stated in the Rehabilitation Loan Agreement and no extension was provided. Lender failed to reduce the loan amount by the 50 % discount of {$75000.00} associated with the Good Neighbor Next Door (  GNND ) program A principal reduction of {$14000.00} is required. The lender must provide a copy of the check to Borrower and print out from the servicing screen reflecting the reduction and the new principal balance. The repairs were not started or completed in compliance with the program requirements ; therefore, the property does not meet HUDs Minimum Property Requirements or Standards. The subject property had no toilet, hot water, kitchen or heat at the close of escrow [ making the home uninhabitable and non-compliant with the GNND program and 203k mortgage requirements ]. Broker Solutions INC, XXXX XXXX XXXX XXXX failed to self-report the work stoppages on two separate occasions for more than 30 consecutive days. The 203k escrow administration process was not conducted and concluded in accordance with program criteria. Broker Solutions Inc, XXXX XXXX XXXX XXXX failed to verify the status of the rehabilitation work when the escrow account had zero disbursed within the required six-month period. The Mortgagee [ the lender ] is fully responsible for authorizing draw inspections, managing the rehabilitation escrow account, and approving the associated draws from the account. The condition of the 203k project was so bad, HUD required XXXX XXXX XXXX to sign an Indemnification Agreement on XX/XX/XXXX to absolve HUD of risk " as a resolution of the cited deficiency. '' More than 6 months after receiving HUD 's findings and being forced to sign the indemnity agreement, XXXX XXXX XXXX has yet to take actions directed by HUD, specifically the " principal reduction of {$14000.00} ''. I have refused all subsequent offers since the principal reduction has not occurred and funds for the damage would only be provided if I refinance with XXXX XXXX XXXX. They have since started collection procedures demanding a {$160000.00} payoff ( on an payoff balanced they estimated to be {$91000.00} on XX/XX/XXXX ) based upon violations of the 6 month rehabilitation time limit and habitability requirement in the deed. The HUD review was quite clear as to their responsibility for these outcomes.

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