Consumer complaint received 2026-06-10 00:00:00
Product: Mortgage — FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Delays in the application process
Company: Zillow Group Inc.
State: FL

Complaint narrative:
I am filing this complaint regarding Zillow Home Loans ' handling of my FHA mortgage application and what I believe to be repeated misrepresentations regarding the status of a XXXX issue, which resulted in significant delays, financial harm, and unnecessary stress during my home purchase transaction. I applied for an FHA mortgage through Zillow Home Loans for the purchase of a primary residence in Florida. During the underwriting process, a XXXX issue surfaced relating to an SBA debt that was the result of identity theft and was not associated with me. I immediately took action to address the issue, including filing identity theft reports, police reports, and working with the appropriate agencies to resolve the matter. Throughout the loan process, Zillow Home Loans repeatedly communicated to me that the XXXX issue had been cleared or was no longer an obstacle to loan approval. Based on those representations, Zillow Home Loans proceeded with the loan process, including ordering and completing the appraisal, collecting additional documentation, and continuing underwriting activities. At no point was I informed that the XXXX issue remained unresolved or that closing would be delayed because of it. After I incurred expenses associated with the transaction and relied on Zillow Home Loans ' representations, I was later informed that the XXXX issue was still outstanding and that my loan could not proceed. This directly contradicted prior communications from Zillow Home Loans and caused substantial delays in my closing process. As a result of these actions, I incurred additional expenses and damages, including but not limited to : Costs associated with a delayed closing. Additional housing and moving-related expenses. Time and effort spent responding to changing lender requirements. Significant emotional distress and uncertainty due to inconsistent information provided by the lender. Potential impact on contractual obligations associated with the home purchase. My concern is not merely that underwriting required additional review, but that Zillow Home Loans provided inaccurate and conflicting information regarding a critical eligibility requirement and allowed me to continue incurring expenses while representing that the issue had been resolved. I am requesting that Zillow Home Loans : Provide a complete written timeline of all internal actions, notes, and communications related to my XXXX review. Explain why I was informed that the XXXX issue had been cleared when it had not. Explain why the loan process continued and expenses were incurred if the lender had not verified XXXX eligibility. Reimburse me for reasonable out-of-pocket expenses and financial damages resulting from the delay. Review its policies and procedures to ensure borrowers are not provided inaccurate information regarding FHA eligibility requirements and loan status. I am requesting CFPB assistance in obtaining a formal response from Zillow Home Loans regarding these issues and in facilitating a fair resolution.

Company response to consumer: Closed with explanation