Consumer complaint received 2025-01-03 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — An existing modification, forbearance plan, short sale, or other loss mitigation relief
Company: GUARANTEED RATE INC.
State: FL

Complaint narrative:
Subject : Response to Loan Complaint # XXXX Regarding FHA Loan Approval for XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX, Addressing my complaint regarding the FHA loan approved for the property located at XXXX XXXX XXXX XXXX, XXXXXXXX XXXX XXXX. After reviewing your response, I must reiterate my concerns and provide further evidence highlighting why this loan approval was not compliant with FHA standards. 
Key Issues Highlighting Non-Compliance 1. Code Violations Predating the Appraisal and Loan Approval The property had multiple code violations recorded by the City of XXXX prior to the initial appraisal conducted in XX/XX/XXXX. These included : o Missing architectural plans ( Code XXXX, dated XX/XX/XXXX ). 
o Ventilation system failures ( Codes XXXX and XXXX, dated XX/XX/XXXX and XX/XX/XXXX ). 
o Incomplete plumbing inspections ( XXXX XXXX, dated XX/XX/XXXX ). 
o Unapproved mechanical ventilation systems ( XXXX XXXX ). 
o Unpermitted construction work ( Code XXXX, requiring work to cease until permits were secured ). 
FHA guidelines, as outlined in HUD XXXX XXXX, explicitly require that all properties meet minimum property standards, including adherence to local building codes. These unresolved violations rendered the property ineligible for FHA loan approval. 
2. Inadequate Repairs and Misleading Appraisal Compliance While your records indicate that minor repairs ( e.g., bedroom ceiling, window screens ) were completed prior to the final appraisal, these actions failed to address the structural and systemic issues flagged in the citys records. The appraiser either overlooked or intentionally disregarded these critical violations, thereby failing their duty to ensure compliance with FHA property standards. 
3. Material Defects Discovered Post-Occupancy Upon moving into the property, I encountered severe issues, including : o A leaking roof that caused water damage to the second floor. 
o Widespread black mold. 
o A rodent infestation. 
o Basement flooding due to plumbing failures. 
o Electrical hazards, posing significant safety risks. 
These defects, all part of the pre-existing code violations, should have been identified and addressed prior to loan approval. 
4. Misappropriation of Escrow Funds Contrary to your statement, {$110000.00} was held in escrow for necessary repairs, as per contractual agreements. However, these funds were never used for repairs and were instead misappropriated by the title company, XXXX XXXX XXXX XXXX, which has since ceased operations. This constitutes a breach of fiduciary duty and further compromised the integrity of this transaction. 
Request for Action Given the documented violations and procedural failures, I respectfully request that Guaranteed Rate Inc : 1. Remove this loan from my credit record, as it was issued under fraudulent and non-compliant circumstances. 
2. Reimburse all financial losses incurred, including repair costs, down payments, and lost equity. 
3. Conduct an independent review of your appraisal and loan approval processes to prevent similar issues in the future. 
This case represents a clear failure to adhere to FHA guidelines and consumer protection standards. I trust that Guaranteed Rate Inc. will take the necessary steps to rectify this matter and restore my financial standing. 
I look forward to your prompt response. Should you require additional documentation, I am happy to provide it. 
Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation