Consumer complaint received 2026-05-15 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Closing on a mortgage — Closing disclosure or other related disclosures
Company: SUN AMERICAN MORTGAGE
State: UT

Complaint narrative:
I am submitting this complaint regarding my experience with Sun American Mortgage and concerns related to the handling of my loan transaction and communications surrounding my HELOC and home purchase in XX/XX/year>. On XX/XX/year>, XXXX XXXX from Sun American Mortgage began communicating with XXXX XXXX XXXX XXXX XXXX regarding the structure and purpose of my HELOC. During this process, I relied on Sun American Mortgage for guidance regarding how the HELOC should be structured and presented. On XX/XX/year>, I received a text message from XXXX XXXX instructing me not to mention anything about renting out my current property if the bank asked questions and instead to focus on income, paying off debt, and reserves. At the time, I relied on the guidance being provided by Sun American Mortgage as lending professionals. Throughout this process, my understanding was that the HELOC funds were intended to be used toward the purchase of a new home, while separate retirement funds were being used to pay off debt and improve my financial position. However, communications sent to the credit union by Sun American Mortgage described the HELOC differently, including references to the property being tied to a primary residence and the funds being used for debt payoff and reserves. On the evening of XX/XX/year>, approximately XXXX day before closing, XXXX XXXX informed me that underwriting had suspended or declined the loan. During that call, I was presented with XXXX options. The first option was to convert the property into an investment property in order to qualify, which would not have worked based on my financial situation and debt-to-income ratios. The second option was to obtain a {$77000.00} gift from a family member within approximately XXXX hours before closing. This was not realistic given the amount and timeframe involved. That same evening, I received communication from the real estate agent stating that the seller was upset the transaction was no longer moving forward and was requesting additional earnest money, penalties, and concessions in order to extend the transaction. By this point, my available funds had already been exhausted throughout the transaction process, and I was unable to meet those additional demands. On XX/XX/year>, I signed the cancellation of the transaction because I no longer believed I had a realistic ability to move forward with the purchase after the underwriting issues and last-minute conditions that had arisen. On XX/XX/year>, a representative from Sun American Mortgage contacted me and offered to help cover hotel expenses because my condo had already been rented and I no longer had housing available following the failed transaction. On XX/XX/year>, I spoke with representatives from Sun American Mortgage regarding the failed transaction and concerns surrounding the handling of the loan process. During this conversation, it was acknowledged that mistakes had been made during the handling of the loan. This conversation was recorded. On XX/XX/year>, I had another conversation with Sun American Mortgage regarding the underwriting issues and the HELOC structure. During this conversation, it was discussed that the HELOC issue related to the property being treated as a primary residence rather than an investment property. This directly related back to the earlier communications and guidance that had been provided to both me and XXXX XXXX XXXX XXXX XXXX regarding how the HELOC should be structured and presented. As a result of these events, I lost the home purchase under contract, experienced significant disruption to my housing situation after my condo had already been rented, incurred relocation and storage-related expenses, and experienced substantial financial and personal hardship. I am requesting that the CFPB review the handling of this transaction, the communications made to XXXX XXXX XXXX XXXX XXXX on my behalf, and the guidance provided to me throughout the loan process. I have retained supporting documentation, including emails, text messages, and recorded conversations related to these events all evidence I have is clear proof of Sun Americans actions. The voice recordings are over the XXXX below, happy to provide those voice recordings if needed. The voice recordings are strong evidence and have verbal proof from sun Americans loan officer admitting to their mistakes and admitting to what happened during underwriting.

Company response to consumer: Closed with explanation