Consumer complaint received 2025-06-25 00:00:00
Product: Mortgage — FHA mortgage
Issue: Closing on a mortgage — Fees or costs after closing
Company: LoanCare, LLC
State: TX

Complaint narrative:
I am submitting this complaint due to a harmful and potentially deceptive loan structure involving the use of a down payment assistance ( XXXX ) program tied to my home purchase in XXXX, Texas When I purchased my home, I was referred to XXXX XXXX by a friend. I reached out to XXXX and I was the referred to a specific lender, XXXX XXXX at XXXX Mortgage, to get pre approved. I mentioned the area of XXXX Texas as interest of residence and for the purpose of XXXX XXXX ( for my autistic son ). I was told that wasnt a good area for me because it was far and the taxes were much higher. It has become evident to me that these parties worked together to restrict my options as a buyer for products and services that would benefit me. Based on the way the transaction was structured, I now believe I was steered toward specific service providers who prioritized their mutual interests over mine. 

During the loan process, I informed XXXX XXXX that I was fully prepared to cover my own down payment out of pocket ( I also had verifiable funds to support ). However, he strongly insisted that I accept the XXXX funds through TSAHC instead, assuring me it would be in my best interest so I could have more cash to move, and that there was nothing to worry about. At no point did he clearly explain that the XXXX would result in a second lien being recorded on my home, or that this would limit my future ability to refinance, restructure, or obtain mortgage relief. 

In fact, XXXX XXXX personally assured me that he would follow up within XXXX months to a year to help me refinance the loan. This gave me a false sense of security that I would have future options. However, I never received any follow-up, and that promise was never honored. 

My mortgage company, Loancare, added forcedplace insurance in XXXX to backdate for XXXX but I had insurance in place. They mentioned my policy wasnt sufficient and they added XXXX policies, XXXX for XXXX and the other for XXXX. Ive never received any documentation or correspondence that mentioned my insurance or escrow was at any level of risk. 

I had another lender review documents to see if I could get help, they mentioned it was other products available at the time to help with dpa that were more favorable and didnt understand why this was the option. They said there was nothing that could be done. 

Recently, I contacted my loan servicer, LoanCare, to explore mortgage assistance options due to financial hardship. I was told there was nothing they could do because the second lien from the XXXX makes me ineligible for modification, refinancing, or relief programs.They mentioned they had the right to backdate and charge me for insurance and if I didnt pay they would foreclose on the property. No resolve was offered Additionally, I am now facing an escrow shortage caused by an insurance discrepancy. However, the insurance policy in question was submitted, approved, and cleared at closing, meaning I met all requirements at the time of settlement. I should not be held responsible for shortages or servicing issues that occurred after closing due to lender or servicer mismanagement. 

This entire transaction appears to have been structured in a way that benefited the referring partiesMr. XXXX, XXXX XXXX, and XXXX XXXX placing me, the buyer, at long-term financial risk. The steering, the misleading reassurances by XXXX XXXX, and the mishandling of my escrow account raise serious concerns about potential violations of RESPA, XXXX, and XXXX XXXX laws. As a single mother of a XXXX child, I believe I was targeted as a vulnerable buyer for the purpose of wrongful enrichment.

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