Consumer complaint received 2025-06-25 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Delays in the application process
Company: Lennar Financial Services, LLC
State: IN

Complaint narrative:
Subject : Complaint Regarding Earnest Money Deposit and Mortgage Loan Processing with Lennar Mortgage LLC and Lennar Corporation To the Consumer Financial Protection Bureau, I am writing to file a formal complaint regarding issues encountered during the purchase of a home from Lennar Corporation, specifically pertaining to the mortgage loan process through Lennar Mortgage LLC and the subsequent handling of our earnest money deposit. 

On XX/XX/year>, we signed a purchase agreement with Lennar Corporation that included a XXXX mortgage clause requiring us to secure loan commitment within that period. Prior to signing, on XX/XX/year>, Lennar 's loan officer verbally confirmed our loan eligibility based on our financial situation.

The loan approval process experienced significant delays. Despite our efforts to expedite the process as the mortgage clause expiration neared ( contacting the loan officer on XX/XX/year> ), a definitive decision letter was not provided in a timely manner. On XX/XX/year>, when I requested an official decision letter, the loan XXXX indicated the process was ongoing and suggested I contact the seller. Our conditional approval letter was not received until XX/XX/year>, XXXX days after our mortgage clause had expired. 

Further inconsistencies arose when, on XX/XX/year>, Lennar Mortgage LLC requested an additional payment of {$11000.00} to buy down the interest rate due to a high debt-to-income ratio. We informed them we could not make this payment. The following day, we were informed that this additional payment was not required due to " miscalculations, '' which raised concerns about the accuracy and transparency of the financial assessment.

During this period, we requested an extension of the mortgage clause from a Lennar representative between XX/XX/XXXX and XXXXXXXX XXXX but this request was denied. On XX/XX/year>, we updated the seller on our loan status, indicating our inability to secure the loan within the agreed timeframe and seeking either a refund or an extension. On XX/XX/year>, the seller denied our request to extend the mortgage clause and stated that if we did not proceed with the purchase, we would be in default of the agreement. 

On XX/XX/year>, the seller denied our refund request and issued an ultimatum : close by XX/XX/year>, or forfeit the home and our {$10000.00} earnest money deposit. This provided insufficient time to prepare for closing, especially as our loan was not yet fully approved, and directly contradicted our signed agreement 's 10-day notification clause for closing. 

On XX/XX/year>, we received a verbal loan denial from Lennar Mortgage LLC due to our debt-to-income ratio. We immediately requested an official denial letter for the seller, but this was not provided at that time. Disturbingly, on the same day, Lennar Mortgage LLC asked us to wire the down payment before final approval, stating it would be refunded if denied, a highly unusual and unacceptable request.

We formally submitted a refund request to the seller, which was denied. The official denial letter from Lennar Mortgage LLC, citing " excessive obligation '' and " unable to verify income, '' was finally received on XX/XX/year>, well after the critical deadlines. 

We believe that Lennar Mortgage LLC and Lennar Corporation engaged in practices that were detrimental to us as consumers, including : * Failure to provide timely and accurate loan commitment information.

* Inconsistent and potentially misleading financial assessments.

* Lack of flexibility and unwillingness to extend the mortgage clause despite ongoing loan processing.

* Unreasonable demands and insufficient notice for closing, leading to the forfeiture of our earnest money.

* An irregular request for a down payment prior to final loan approval.

We respectfully request the CFPB investigate these practices and assist in the recovery of our {$10000.00} earnest money deposit. We have attached copies of relevant documents, including the purchase agreement, communications, and the final denial letter, for your review. 

Thank you for your attention to this serious matter. 

Sincerely,

Company response to consumer: Closed with explanation