Consumer complaint received 2026-05-07 00:00:00
Product: Mortgage — FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Negative impact of inaccurate appraisal
Company: Flat Branch Mortgage, Inc.
State: MO

Complaint narrative:
I closed on XX/XX/year> and within this 6 days, counting today, that I have resided there, I have found the following issues, I also want to add that my personal inspection happened BEFORE my appraisal, and he has all the readily visible things in his report, but the appraiser altered the angle of pictures and cut the pictures off at convenient spots to hide defects that are life threatening. I am an XXXX for my career and have professional testimony for pests and diseases. There was a mouse infestation at time of move in. In my appraisal pictures you CAN SEE clear incubators ( 2 ) and 1 tub with a heat lamp in the kitchen areas. My realtor is a witness to this as well. As a home buyer, I did NOT know that it was illegal and a common tactic to hide infestations. I have done all research since moving into this home to ensure all safety issues are managed. Flat Branch Home Loans are on self reporting status for the Quality Checks of the FHA Appraisals. I have an email out to them since XX/XX/year> with no response. I requested my final appraisal walkthrough to list repairs and received it today. But I should have had it legally 3 days before closing. I never signed a waiver of notice for it either. It was also stated in passing by the sellers realtor, that he ended up knowing the appraiser from previous jobs. The day of closing, my appraisal report was held until the last minute and walk through was rushed due to that and the seller being in the home when we arrived. We interrupted his cleaning of the mouse infestation. I currently, XX/XX/year>, have a contractor in my home providing a complete list to add to what I have listed below. We are sitting down with the seller and his realtor once the list is complete to come to an agreement, but this loan should have NEVER happened. Once the appraiser walked in and saw the live animals, he should have left. He did not. The home seller is also a Fireman so he is aware of all fire codes he broke and is a self proclaimed home builder, which would mean he should have professional knowledge of these issues. He lied on his sellers disclosure on all of these as well. I have any and all documentation to prove this. 1. Missing electrical junction boxes FHA : HUD Handbook 4000.1 Electrical systems must be safe and free of exposed wiring Missouri : Mo. Rev. Stat. 67.410 ( dangerous buildings ) Code : NEC 314.25 All junction boxes must have covers ________________________________________ 2. Damaged outlets/ missing covers FHA : HUD Handbook 4000.1 Health & Safety : Electrical hazards prohibited Missouri : 67.398 ( unsafe property conditions ) Code : NEC 406.5 Receptacles must have proper faceplates ________________________________________ 3. Holes allowing pest entry FHA : 24 CFR 200.926d Property must be free of infestation Missouri : 192.300 Public health authority over unsanitary conditions Code : IPMC 304.14 Insect/rodent harborage must be eliminated ________________________________________ 4. Leaking sink + sagging floor FHA : HUD Handbook 4000.1 Structural soundness required Missouri : 67.410 Unsafe/dangerous structures Code : o IPC 305.4 Plumbing must be maintained in good repair o IPMC 305.1 Structural members must be sound ________________________________________ 5. Rotted bathroom vanity ( possible mold ) FHA : Health hazard ( mold/moisture damage ) Missouri : 192.300 Sanitation enforcement Code : IPMC 305.3 Interior surfaces must be maintained sanitary ________________________________________ 6. Dishwasher contaminated with rodent feces FHA : 24 CFR 200.926d Free of pest infestation Missouri : 196.1000 ( food sanitation / contamination principles ) Code : IPMC 309.1 Infestation must be exterminated ________________________________________ 7. Opening under dishwasher FHA : Pest exclusion requirement Missouri : 192.300 Code : IPMC 304.13 Openings must be sealed against rodents ________________________________________ 8. Missing smoke alarms FHA : HUD Handbook 4000.1 Smoke detectors required Missouri : 320.010320.080 ( fire safety regulations ) Code : IRC R314 Smoke alarms required in bedrooms and living areas ________________________________________ 9. Non-functioning stove FHA : Appliances must be operational if present Missouri : Implied warranty of habitability ( case law ) Code : IPMC 403.2 Cooking appliances required ________________________________________ 10. Broken glass door FHA : Security + safety requirement Missouri : 67.410 Code : o IPMC 304.13 Doors/windows must be in sound condition o IBC 2401.2 Glazing must be intact ________________________________________ 11. Non-functional HVAC FHA : Heating must be permanent and functional Missouri : Habitability standards ( common law ) Code : IPMC 602.3 Heating facilities required ________________________________________ 12. Unsealed shower FHA : Plumbing must prevent moisture intrusion Missouri : 192.300 Code : o IPC 405.5 Fixtures must be watertight o IPMC 305.4 Must be maintained ________________________________________ 13. Food loss ( secondary ) Supports violation of : o FHA habitability standards o Missouri sanitation authority ( 192.300 ) ________________________________________ 14. Boarding costs ( uninhabitable home ) Missouri : 441.234 ( landlord dutiesif rental context ) Supports constructive eviction / uninhabitability ________________________________________ 15. Hole in closet ( pest entry ) FHA : Pest-free requirement Code : IPMC 304.13 ________________________________________ 1618. Expenses & damages from pests Supported by : o IPMC 309.1 ( infestation ) o Mo. Rev. Stat. 537.600 ( liability/damages framework ) ________________________________________ 19. No water shut-off valve FHA : Systems must be serviceable Code : IPC 606.1 Water supply must have shutoff valves ________________________________________ 20. Lost wages Not code-based, but recoverable under : o Missouri civil damages law ( 537.600 ) ________________________________________ 21. Flickering lights/ overloaded circuits FHA : Electrical must be safe Code : o NEC 210.23 Circuit load limits o NEC 110.12 Electrical must be properly installed ________________________________________ 22. Unfinished ceiling ( fire risk ) FHA : Fire safety requirement Missouri : Fire safety statutes ( 320 ) Code : o IBC 703 Fire-resistance ratings o IPMC 305.1 ________________________________________ 23. Uneven floors/ trip hazard FHA : Safety hazard violation Missouri : 67.410 Code : IPMC 305.1 Structural floors must be safe 24. Closet shelving system detached from wall Issue : Closet shelving collapsed after normal use and was not properly secured into wall studs. FHA : Violates minimum property standards requiring fixtures and components to be safely installed and functional. Missouri : Unsafe fixture installation may constitute dangerous condition under 67.410 RSMo ( Dangerous Buildings ). Code References : o IRC R301.1 Structures and attached components must safely support imposed loads. o IPMC 305.1 Interior structural elements and fixtures must be maintained in safe condition. o IRC R602.6 Framing/support members required for load-bearing attachments. Health & Safety Concern Improperly secured shelving creates risk of bodily injury from collapse and indicates potentially substandard workmanship throughout the home. ________________________________________ 25. Closet light fixtures lack functional switch or pull chain Issue : Closet lights can only be turned off by unscrewing the bulbs. FHA : Electrical systems must be safe and operable under HUD Handbook 4000.1. Missouri : Unsafe/nonfunctional electrical fixtures may violate dangerous building standards under 67.410 RSMo. Code References : o NEC 404.1 Lighting outlets must have proper switching controls. o NEC 410.16 Closet lighting installations must meet safety requirements. o NEC 110.12 Electrical equipment must be installed in a neat and workmanlike manner. Health & Safety Concern Creates electrical/fire hazard due to inability to safely operate lighting fixtures and may indicate improper electrical installation elsewhere in the home. ________________________________________ 26. Visible rafters / unfinished wall-ceiling areas in dining room Issue : Rafters and unfinished areas are visible through wall/ceiling surfaces. FHA : Violates minimum standards for structural integrity and fire safety. Missouri : Unsafe or incomplete structural/fire assemblies may fall under 67.410 RSMo. Code References : o IBC 703 Required fire-resistant construction assemblies. o IPMC 305.1 Structural surfaces must be maintained in sound condition. o IRC R302.13 Fire protection of floor and ceiling assemblies required. o IRC R702.3.5 Gypsum board/fire barrier finishing requirements. Health & Safety Concern Potential fire-spread hazard due to incomplete fire barrier protection and evidence of unfinished or improper construction practices. ________________________________________ 27. Possible improper workmanship / non-code-compliant renovations Issue : Multiple defects throughout the property indicate potentially unlicensed or non-code-compliant construction and repairs. FHA : Property fails minimum property standards for safety, soundness, and security. Missouri : Unsafe workmanship may qualify as dangerous property condition under 67.410 RSMo. Code References : o IRC R102.7 Additions/alterations must comply with code. o IRC R109 Work subject to inspection approval. o NEC 110.12 Electrical installations must be workmanlike. o IPMC 301.2 Property must be maintained in safe and sanitary condition. Health & Safety Concern Pattern of defects suggests systemic construction deficiencies potentially affecting structural integrity, electrical safety, fire protection, and habitability of the residence.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation