Consumer complaint received 2025-11-03 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — Changes in loan terms during or after closing
Company: Common Wealth Mortgage Services
State: UT

Complaint narrative:
Complaint Summary I am filing this complaint against XXXX XXXX for fraudulent inducement and material misrepresentation concerning the appraisal and valuation process of my new construction property. 
Despite being notified that the builder had already begun lowering prices, the lender provided written assurance that the appraisal came in at value and continued to push the transaction forward, resulting in substantial financial harm. 

XXXX. Detailed Timeline of Events XX/XX/year> XXXX Issued : The property was appraised at {$590000.00}. The appraisal report itself acknowledged a declining market trend but did not make downward adjustments, resulting in an overvaluation. 

XX/XX/year> Builder Price Drop ( First Reduction ) : The builder publicly reduced listing prices of comparable unsold units by {$10000.00}. 
On that same day, I directly contacted XXXX XXXX to express concern that the builders action indicated a price decline and potential overvaluation. 
The loan officer responded in writing : Your appraisal came in at value so we are good there. So no impact on loan. Didnt want you to stress. 
Despite being alerted to the market change, the lender did not order a reappraisal or reconsideration of value, and instead reassured me to proceed. 

XX/XX/year> Closing : Relying on the lenders professional assurance and written statement, I proceeded to close on the property at nearly the appraised value ( around {$590000.00} ). 

XX/XX/year> Builder Price Drop ( Second Reduction ) : Only four days after closing, the builder further dropped listing prices by an additional {$26000.00}, confirming the declining trend I had warned about. 

XX/XX/year> Builder Price Drop ( Third Reduction ) : The builder reduced the official list price for the same model from {$590000.00} to {$520000.00}, representing a total decrease of {$66000.00} within six weeks of appraisal. 

XX/XX/year> Confirmed Market Loss : A comparable unit in the same community went under contract for approximately {$500000.00}, nearly {$100000.00} below my appraised value. The builder accepted the offer, confirming the true market correction. 

XXXX. Nature of Misrepresentation and Financial Impact The lenders written statement that there is no impact on loan misrepresented the true market risk and created a false sense of security. 

The assurance was given after the lender had actual or constructive notice of the builders price reduction, violating their duty of appraisal independence and fair disclosure. 

As a result, I purchased the property at an inflated valuation, suffering an estimated {$100000.00} loss in fair market value within months. 

XXXX. Regulatory Violations and Conflict of Interest Appraisal Independence Violation ( 12 C.F.R. 1026.42 ) : By providing verbal and written assurances contradicting market evidence, the lender undermined appraisal independence and failed to ensure unbiased valuation.

Fraudulent Inducement / Misrepresentation : XXXX XXXX knowingly encouraged closing despite material market changes. 

Conflict of Interest : The lender acted as the builders preferred lender and offered a substantial closing incentive, creating a financial motive to close the transaction regardless of valuation integrity. 

XXXX. Good-Faith Disclosure and Requested Action I am filing this complaint in good faith, supported by written communication records, appraisal documents, and builder pricing history. 
I respectfully request CFPB to review XXXX XXXX conduct and determine whether its actions violated federal consumer protection laws, including TILA, RESPA, and Appraisal Independence Requirements. 
A written response or corrective action from the lender is requested.

Company response to consumer: Closed with explanation