Consumer complaint received 2025-11-05 00:00:00
Product: Mortgage — FHA mortgage
Issue: Closing on a mortgage — Changes in loan terms during or after closing
Company: MERCHANTS BANCORP
State: IL

Complaint narrative:
Illinois Department XXXX XXXX XXXX XXXX XXXX Mortgage Origination Complaint Complainant XXXX XXXX XXXXXXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX Processor : XXXX XXXX XXXX : Merchants Bank of Indiana XXXX XXXX XXXX, XXXXXXXX XXXX XXXX Loan Type : FHA Mortgage Loan Amount : {$240000.00} Closing Date : XX/XX/year> Statement of Complaint I am filing a formal complaint against XXXX XXXX ( XXXX  XXXX ), XXXX XXXX ( XXXX XXXX ), and Merchants Bank of Indiana regarding the origination and handling of my FHA mortgage for the above property. 
The loan was mishandled from start to finish, my income was not accurately represented, I was pressured into bringing thousands of dollars in unnecessary cash to closing, and I was denied reasonable accommodation in the document-delivery process. 
These issues caused financial hardship and raise serious questions about the integrity and professionalism of this transaction. 

XXXX. Failure to Provide Reasonable Access and Accommodation I am not technically proficient, and from the start I asked to complete the loan using manual, paper-based documents with wet signatures rather than through the lenders online portal. 
The XXXX XXXX told me that the bank does not have the ability to fax or scan anythingeverything must be done through the portal. 
Throughout the process, I experienced repeated login failures and password resets, resulting in multiple IT support tickets. 
I repeatedly explained that I could not consistently access the portal and requested an alternative means of signing and delivering documentssuch as by fax, email, or in-person signaturebut my requests were denied. 
I was made to feel that if I could not adapt to their technology, I would risk losing the loan entirely. 
This approach created unnecessary stress and excluded me from a fair opportunity to participate in the process in a way that matched my abilities. 

XXXX. Incomplete Income Consideration I have been employed in salaried higher management for more than XXXX  years, with performance-based bonuses paid monthly, quarterly, and annually. 
Although I explained this clearly to the XXXX  XXXX, my file was qualified using base salary only. 
A proper XXXX of XXXX ( XXXX ) or review of my paystubs would have shown those bonuses and accurately reflected my income. 
Even if my ratios had been borderline, a more reasonable approach would have been to pay down or pay off a small credit-card balance to lower monthly debt, instead of requiring me to bring the full mortgage-insurance premium in cash. 

XXXX. Improper Structuring of the Upfront Mortgage Insurance Premium ( XXXX  ) Less than XXXX hours before closing, I was informed that I would need to bring approximately {$5000.00} in additional cash ( rounded for simplicity ) because the Upfront Mortgage Insurance Premium ( XXXX  ) would be paid in cash rather than rolled into the note, though FHA guidelines allow it to be financed. 
I questioned this and suggested postponing closing so underwriting could resubmit the file with corrected income, but both the XXXX  XXXX and processor warned that doing so could risk losing the loan. because it would have to go back into underwriting. 
Under pressure and with very little time, I proceeded to close as presented. 
This decision depleted funds intended for home XXXX and emergencies and contradicted the purpose of FHA financing for first-time homebuyers. 

XXXX. Title Irregularities and Questionable Handling of Ownership From the beginning, I requested that my daughter, XXXX XXXX, be included on the title. 
This was known throughout the origination process. 
At closing, XXXX was not included, and when I questioned itbefore any funds were disbursedI was told the bank wanted to sell the loan as-is without her on title to facilitate immediate sale of the loan. 
After I objected, XXXX XXXX arranged for an attorney he hired to prepare a quitclaim deed adding XXXX after closing, instructing me that it was my responsibility to physically record it but he would cover the expense. 
I am still in the process of completing that filing. I was not charged for the attorney to complete the Quit Claim Deed however he has not responded to my inquire to pay for the recording fee of {$70.00} as discussed. 
This handling of the title felt unnecessary, nontransparent, and outside standard practice, particularly for a federally backed FHA mortgage, and further undermines my confidence in this lenders integrity. 

XXXX. Coercive and Unprofessional Communication When I raised concerns about the loan, I was repeatedly discouraged from questioning the process. 
In written correspondence, XXXX XXXX stated that the headache and sleepless nights he endured to get my file approved werent worth the XXXX XXXX he earnedimplying that I should be grateful rather than expect professionalism. 
This dismissive tone was consistent and deeply concerning. 

XXXX. Requested Action and Resolution I respectfully request that the Illinois XXXX  XXXX XXXXXXXX XXXX XXXXXXXX XXXX : Investigate the conduct of XXXX XXXX, XXXX XXXX, and Merchants Bank of Indiana to determine whether they acted in compliance with Illinois lending laws, professional-licensing standards, and FHA regulations XXXX 
Review my loan file to confirm whether my income and reserves were properly documented, whether the XXXX should have been financed, whether the title handling was appropriate, and whether I was denied a reasonable paper-based option to complete my loan. 
Determine whether restitution or reimbursement of any portion of the XXXX  or related costs is warranted. 
Assess whether disciplinary or corrective action should be taken against the individuals or institution for potential negligence, coercion, lack of accessibility accommodation, or misrepresentation toward a first-time homebuyer. 
Supporting documentationincluding pay stubs, correspondence, text messages, and loan documentsis available upon request. 
I prefer to provide these materials only if requested after the XXXX initial review. 

XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation