Consumer complaint received 2021-07-08 00:00:00
Product: Mortgage — FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: WATERSTONE MORTGAGE CORPORATION
State: IA

Complaint narrative:
To whom it may concern - Senior Management WaterStone Mortgage This is concerning a fraudulent real estate appraisal conducted at the origination of a FHA loan, orchestrated by WaterStone Mortgage. A federal crime was committed by XXXX XXXX XXXX, retained by WaterStone Mortgage in XXXX XXXX XXXX. When contacting your company, I was directed to a Mrs. XXXX XXXX who told me that WaterStone Mortgage has a strenuous process for FHA loans to be reviewed under and that the information that I was suggesting was totally false. I was also told at the time that the loan was purchased on the second market by XXXX XXXX and if I had further concerns about the validity of the loan, to contact them. Mrs. XXXX firmly stated that the problem was for WaterStone Mortage to resolve. I have pursued XXXX XXXX and have spoken to senior management regarding this serious allegation. They emphatically state that since WaterStone was the company that originated the loan and the supposed fraud took place at the origination of the FHA loan, it is solely the responsibility of WaterStone Mortgage to investigated the fraudulence, since it occurred under their governance. The facts are as such ; the entire comparison set of dwellings used to support the FHA funding are completely false. If one carefully examines the appraisal in question, the dwellings used for comparison are of an entirely different construction structure that that of the home that the FHA funded through XXXX Mortgage. The home located at XXXX XXXX XXXX XXXX, Iowa is categorically a SPLIT - FOYER classification of dwelling when illegally compared to single and two story homes commanding an entirely different price set than a split - foyer property. The financial loss here is quite significant. In the year of funding the property ( 2019 ) the entire Iowa county of XXXX home sales, clearly shows dwellings that have closed escrow in the range of {$100000.00} to low to mid {$200000.00} range when this dwelling was funded for {$340000.00} resulting from WaterStone Mortgage and their negligence, by clearly overlooking this enormous error. There could be no defense on the part of WaterStone Mortgage other than to admit the lack of oversight on the part of WaterStone Mortgage solely. Why would XXXX XXXX be at fault, when the loan origination took place solely by WaterStone Mortgage. Why would the fault of the federal crime be viewed anything other than neglect? Simply, the laws for an FHA certified appraisal are the compliance of a comparison study of like for like dwellings, not those of a completely different construction, as is shown in my appraisal that WaterStone Mortgage gave their blessings to and wrote-off on to be submitted to the FHA for federal government funding. The aforementioned dwelling has been on the real estate market in XXXX, Iowa for 18 months with not one valid offer. The home is so upside - down in value, I simply can not even sell the property for what the home was originally funded for by the FHA with the approval of WaterStone Mortgage. It comes to the basic underwriting of the federal loan which WaterStone Mortgage failed miserably and is in non-compliance legally. To be told that it is the fault of XXXX XXXX is entirely not acceptable practice in any circumstances.

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