Consumer complaint received 2026-02-16 00:00:00
Product: Mortgage — VA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Application denials
Company: LAKEVIEW LOAN SERVICING, LLC
State: DC

Complaint narrative:
I am requesting immediate review of potential servicer noncompliance involving a VA loan assumption that was formally approved by VA on appeal on XX/XX/year>, including Release of Liability and Substitution of Entitlement. Despite this binding VA determination, the servicer has failed to implement the approval and is instead imposing new post-appeal qualifying conditions that were not part of the VA decision.

After VA overturned the denial, the servicer introduced new internal overlays related to employment continuity and timing that were never raised during the appeal. These new conditions were introduced only after the approval and are now being used as a basis to delay or potentially deny implementation of the VA decision.

Under 38 CFR 36.4355, VA holds final authority over approval of assumptions involving release of liability and substitution of entitlement. Once VA overturns a denial on appeal, the servicers role is administrative implementationnot re-underwriting. VA servicing guidance ( M26-4 ) further provides that servicers are not to impose new qualifying overlays or re-adjudicate approved assumptions absent new, material adverse information. 

No new material adverse information has arisen since the appeal approval. Instead, new internal requirements have been introduced that make compliance functionally impossible within the transaction timeline. The scheduled closing date is XX/XX/XXXX, and the newly imposed internal overlay can not reasonably be satisfied before that date. This creates an artificial barrier that effectively nullifies a binding VA appeal decision. 

Introducing impossible post-approval conditions immediately before closing raises serious concerns of willful noncompliance. A servicer can not avoid implementing a VA determination by layering new internal standards after losing an appeal. Doing so substitutes servicer discretion for VA authority and undermines the integrity of the VA appeals process.

This is not merely a servicing dispute but a potential program integrity issue. When a servicer disregards a final VA determination and imposes unattainable post-appeal requirements, it raises concerns of regulatory noncompliance, improper obstruction of a federally backed benefit, and erosion of borrower protections under the VA loan program. 

Given the binding nature of the XX/XX/XXXX VA appeal decision, the absence of new material risk, and the imminent XX/XX/XXXX closing deadline, I respectfully request immediate review and intervention to determine whether the servicers actions constitute noncompliance with VA regulations and failure to implement a valid VA determination. 

Urgent review is requested due to the time-sensitive nature of this matter and the risk of irreparable harm resulting from failure to implement the approved VA assumption XXXX

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