Consumer complaint received 2025-08-14 00:00:00
Product: Mortgage — FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Changes in loan terms during the application process
Company: K. HOVNANIAN AMERICAN MORTGAGE, LLC
State: CA

Complaint narrative:
To Whom It May Concern, Subject : Formal Complaint Against K. Hovnanian and K. Hovnanian American Mortgage ( NMLS # XXXX ) Regarding : Miscommunication, Poor Conduct, Mishandling of Personal Data, and Violation of Buyer Rights I am writing to file a formal complaint against K. Hovnanian Homes and K. Hovnanian American Mortgage concerning a distressing series of events during my attempt to purchase a home at Lot XXXX, XXXX XXXX ( Sales Price : {$620000.00} XXXX XXXX XXXX XXXX XXXXXXXX, CA. The treatment and mishandling of key matters throughout this process raise serious questions about the companys professionalism, transparency, and compliance with data privacy laws. 

1. Chronological Summary of Key Events XX/XX/year> I made an earnest deposit for the home ( {$5000.00} ). Contract was sent. 

XX/XX/year> XXXX XXXX reached out informing me that the rate confirmed by XXXX ( XXXX supervisor ) was 4.375 %, not 4.25 %. She asked me to confirm the rate with the sales team. 

I pushed back via email on many contract clauses and requested my emails supersede the contract terms. XXXX XXXX called and explained that the clauses were general statements, pressuring me to sign quickly before the offer expired. I signed but explicitly noted the debated clauses should not apply to me. 

XX/XX/year> After further discussion, the interest rate was confirmed at 4.25 %. XXXX began pressuring me to apply for the loan with my wife as a co-borrower, despite my repeated requests to be the sole borrower. She responded rudely during this period. 

XX/XX/year> XXXX confirmed the loan terms : 4.25 % interest rate, all upgrades like other homes, and closing costs covered by K. Hovnanian. However, she continued pushing for my wife to be on the loan. 

XX/XX/year> Conference call with XXXX XXXX ( VP ), XXXX, XXXX, and others confirmed I would be the sole borrower and 4.25 % would be interest rate. I was told I could provide 12 months of bank statements to show my wifes payments are made from a separate account. 

I requested that my wifes credit not be pulled or at minimum only a soft inquiry be performed. This was denied citing company policy. 

XXXX communicated to my wife during verbal consent to pull her credit that all closing costs would not be covered by K. Hovnanian and that lenders know the numbers better, contradicting sales team promises. The 6 % FHA incentive cap on home price was cited but was never properly disclosed or honored by adjusting home price or upgrade incentives. 

XXXX texted from his work number informing me the homes frame walk was completed without prior notification. My attempts to follow up were ignored. 

I submitted my loan application, and my wife verbally consented to a hard credit pull. 

XX/XX/year> I visited the K. Hovnanian office in XXXX XXXX, CA, to meet XXXX and seek clarification. XXXX told me the sales team wanted to cancel the contract and refused to sell me the home. He spoke in a highly unprofessional manner and blamed me for the situation. 

XXXX was called on speakerphone and threatened cancellation with earnest deposit refund. I saw an internal email from XXXX to XXXX instructing cancellation. 

XX/XX/year> I accepted the sales teams cancellation threat and requested a cancellation agreement that preserved my buyers interests. 

XX/XX/year> XXXX called me in a rude, unprofessional tone, blaming me and introducing impound amount as a new closing cost term to confuse me and mentioned that these need to be paid or I have the option of accepting the cancellation agreement. 

XX/XX/year> I sent emails to XXXX, the lender, and senior team requesting cancellation with buyers interests intact. 

The cancellation agreement was sent to me citing purchaser remorse as the cause but should've been seller cancellation, with clauses allowing sellers officer to approve earnest deposit refund and processing time of 68 weeks. I did not signed the cancellation agreement till now. 

XXXX pressured me to sign the agreement quickly and later called me combative for no reason in an unprofessional text message. 

2. Summary of Violations and Concerns A. Miscommunication and Shifting Terms Loan terms, including impound amounts and closing cost responsibilities, were changed mid-process without clear explanation or transparency.

I was pressured to act under urgency without full disclosure of essential details.

B. Poor Conduct and Unprofessional Behavior Multiple dismissive, rude, and unprofessional communications, especially from sales representative XXXX XXXX. 

I was made to feel burdensome simply for asking reasonable questions and requesting clarity in writing. 

C. Hard Credit Pull on My Wife and Related Concerns The hard credit inquiry on my wife was conducted after her verbal consent. 

XXXX XXXX informed my wife that all closing costs would not be covered by K. Hovnanian and that lenders know the numbers better, contradicting earlier sales team promises. 

The 6 % FHA incentive cap on home price was not properly disclosed or honored by adjusting the home price or offering equal or better upgrade incentives. 

Following the credit pull, my wife experienced increased spam, telemarketing, and unsolicited calls, raising concerns of potential mishandling or unauthorized sharing of her personal information. 

These circumstances suggest possible violations of consumer data privacy laws ( FCRA, GLBA ) and demonstrate poor communication and lack of transparency by K. Hovnanian staff.

3. Requested Actions I request the following : A full investigation into the unauthorized handling of my wifes credit information and any data privacy breaches.

A written explanation detailing why the sales contract was canceled and who authorized this decision. 

XXXXmmediate and full refund of my earnest deposit with a clear timeline and confirmation.

Assurance that no negative credit reporting or adverse effects will result from this transaction.

Confirmation that I bear no further obligations or liabilities under the canceled contract.

A formal review of staff conduct, particularly regarding the unprofessional and disrespectful communication.

Confirmation that my legal rights remain intact, with no hidden waivers limiting my ability to pursue future claims. 

Written apology from XXXX, XXXX and XXXX on there unprofessional and rude behavior. 

I have all supporting evidence including emails, texts, call summaries, contract documents. Please treat this matter with urgency and seriousness. 

All I ever asked from K Hovnanian was to stick to the agreed price, interest rate, incentives and upgrades on the mutual and contract agreement which they failed to abide by and kept blaming me like I was asking too much. 

Sincerely,

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