Consumer complaint received 2026-02-18 00:00:00
Product: Mortgage — VA mortgage
Issue: Closing on a mortgage — Changes in loan terms during or after closing
Company: BROKER SOLUTIONS, INC.
State: OH

Complaint narrative:
This letter is a formal Notice of Error regarding the servicing of my VA construction-to-permanent loan. I am writing to dispute the unauthorizedXX/XX/XXXX force-placed insurance charge and the subsequent interference with my mortgage payoff. 
XXXX. Fraudulent Completion and Builder Abandonment Our builder, XXXX XXXX, prematurely obtained a Certificate of Occupancy from XXXX XXXX and fraudulently informed XXXX that construction was complete. Despite the home being unfinished and the builder explicitly stating to both XXXX and us that he was refusing to honor any warranty and walking away, XXXX proceeded to disburse the final payment. Per VA guidelines, lenders have a responsibility to ensure builders are licensed, insured, and provide a XX/XX/XXXX-year builders warranty. XXXX failed this duty by paying a builder who had already declared they would not honor mandated warranties. 
XXXX. Improper Force-Placed Insurance Months after the final disbursement, XXXX informed us that the builder 's insurance policy had lapsed. We made numerous attempts to obtain a policy back-dated to the lapse date, but no carrier would provide retroactive coverage. Because XXXX failed to monitor the builder 's compliance during the construction phase, you force-placed a policy costing over {$7000.00}. Under XXXXXX/XX/XXXXXXXX, a servicer must have a " reasonable basis '' for force-placed insurance ; however, the lapse occurred due to XX/XX/XXXX failure to hold the builder accountable before final payment was released. 
XXXX. Payoff Interference and Wired Funds Rejection Most critically, after our closing attorney requested and received a final payoff amount from XXXX, you unilaterally added the {$7000.00} insurance fee to the balance AFTER the payoff figure was provided. This caused our wired funds to be rejected. While XX/XX/XXXX claims to be " fronting '' the difference, the issue remains unresolved, and our funds are in limbo. 
Required Actions : Immediately remove the XX/XX/XXXX force-placed insurance charge from my payoff balance. 
Provide a corrected payoff statement to the closing attorney within XXXX business days. 
Accept the original wired funds or provide a clear timeline for the internal " rectification '' XXXX promised. 
Failure to resolve this error may result in a formal complaint to the Department of Veterans Affairs. 

Sincerely, XXXX XXXX * VA Construction Loan Requirements Builder Warranties : VA requires builders to provide a one-year builder 's warranty on workmanship. Lenders are responsible for ensuring the builder is licensed, bonded, and insured according to state and local requirements. 
Disbursement Responsibility : It is the lender 's responsibility to ensure that all construction exhibits are completed before final funds are disbursed. If items are not completed, the VA may adjust or cancel the loan guaranty. 
Builder Complaints : While the VA typically refers veterans to local building departments for complaints, they provide resources for resolving serious matters through legal counsel or licensing boards.

Company public response: Company believes complaint is the result of an isolated error
Company response to consumer: Closed with explanation