Consumer complaint received 2025-12-24 00:00:00
Product: Mortgage — FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Application denials
Company: Lennar Financial Services, LLC
State: CA

Complaint narrative:
Complainant : XXXX XXXX XXXX File : XXXX Loan Number : XXXX Property : Shoreside @ XXXX ( XXXX XXXX ) Date : XX/XX/year> I. Introduction and Summary This complaint concerns XXXX Mortgages repeated failure to issue the required FHA underwriting denial letter after acknowledging that my loan can not be approved due to documentation that is not presently available. Their refusal or inability to generate the denial notice has prevented escrow from releasing my XXXX deposit, which is protected under the FHA Amendatory Clause. XXXX actions have caused significant financial, emotional, and professional harm and raise substantial concerns regarding federal compliance, consumer protection, and mortgage licensing standards. 

XXXX. Background I entered into a purchase agreement for a XXXX home and was told that I had to use XXXX Mortgage to receive buyer incentives ( although I was pre-approved prior with my own lender ). I fully cooperated with all underwriting requests. However, the loan could not be funded because required documentation can not be finalized at this time. On XX/XX/year>, XXXX loan XXXX informed me the deal would be canceled. Despite this, XXXX continued to delay issuing the underwriting denial. 

Under FHA guidelines, when a loan is not approvable, the lender must provide a written denial. XXXX Mortgage has refused to do so. Instead, I have received inconsistent statements from multiple XXXX representatives, including admissions that the loan XXXX can not generate the denial letter and statements that the letter will only be issued after an internal withdrawal process with no defined timeline. 

This is inconsistent with FHA protocol, industry standards, and federal lending requirements. 

XXXX. Basis of Complaint A. Failure to Issue Required FHA Underwriting Denial Under the FHA XXXX Clause, a borrower is entitled to release of their deposit when financing can not be approved. XXXX Mortgage has failed to produce the required written denial, effectively blocking my access to my own XXXX deposit. 

B. Misuse of the XXXX XXXX Process Staff have repeatedly stated that they can not or will not generate the denial letter until the loan is withdrawn, even though underwriting has already determined the loan can not proceed. This is a procedural manipulation that delays consumer protections. 

XXXX XXXX of XXXX XXXX XXXX refusing to issue the required denial notice, XXXX is attempting to justify withholding a federally protected deposit. This appears to be a violation of FHA program obligations and an improper use of builder-affiliated lending practices. 

XXXX XXXX Harm The delay has caused significant hardship : Interference with professional licensing exam preparation Increased medical and mental health treatment Housing uncertainty Extended financial strain This is not a minor administrative oversight it is a pattern of conduct that has materially harmed me. 

XXXX Possible XXXX XXXX XXXX and consumer reports show that XXXX has a pattern of delaying or obstructing deposit refunds, suggesting this XXXX be a broader compliance issue affecting multiple FHA consumers. 

IV. Specific Regulatory Concerns This conduct raises concerns under : HUD XXXX FHA Regulations failure to issue the required denial notice CFPB Mortgage Disclosure Rules withholding mandatory borrower notifications California XXXX XXXX Standards failure to provide adverse action notice NMLS Mortgage Licensing Rules improper handling of consumer files Real Estate Licensing Rules ( CA XXXX ) misrepresentation and obstruction impacting XXXX deposit release V. Requested Action XXXX. I request immediate regulatory intervention requiring XXXX Mortgage to : XXXX. Issue the formal written underwriting denial letter immediately. 

XXXX. Release the XXXX deposit through escrow without further delay. 

XXXX Review and correct internal procedures to prevent misuse of the withdrawal process. 

Evaluate conduct of involved mortgage and sales personnel for compliance breaches. 

VI. Supporting Documentation Available Upon Request I can provide : Emails and messages showing repeated requests for the denial Written statements from XXXX XXXX refusing or delaying the denial FHA XXXX Clause documentation Evidence of emotional, financial, and professional impact Timeline of all communications XXXX. Conclusion XXXX Mortgages failure to issue the required FHA denial letter is an impediment to federally mandated consumer protections, has caused substantial and ongoing harm, and appears to reflect systemic noncompliance. I request immediate review and enforcement action to ensure compliance with federal lending standards and to compel the release of my XXXX deposit. 

Sincerely, XXXX XXXX XXXX XXXX

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation