Consumer complaint received 2025-10-24 00:00:00
Product: Mortgage — FHA mortgage
Issue: Closing on a mortgage — Closing disclosure or other related disclosures
Company: CrossCountry Mortgage LLC
State: PA

Complaint narrative:
Complaint re : XXXX XXXX XXXX ( NMLS # XXXX ), CrossCountry Mortgage Issue : False pre-approval and failure to disclose material underwriting complications until after buyers were under contract ( second deal ), causing financial loss and consumer harm. 
Complainant : XXXX XXXX XXXXXXXX XXXX  Licensed Realtor, XXXX XXXX XXXX : XXXX XXXX XXXX XXXX XXXX Property Under Contract : XXXX XXXX XXXX, XXXXXXXX XXXX XXXXXXXX Loan Officer : XXXX XXXX XXXX, CrossCountry Mortgage Branch Manager : XXXX XXXX ________________________________________ XXXX. What Happened Early XX/XX/year> : Loan XXXX XXXX XXXX issued a false and undated FHA pre-approval letter to my clients, XXXX XXXX and XXXX XXXX, stating Approved/Eligible for up to {$300000.00} with 3.5 % down and listing only routine conditions ( XXXX XXXX XXXX, NHS cert , verification of employment, appraisal, and title ). There was no disclosure of any reserve requirement or XXXX concerns. 
XX/XX/year> : Relying on that pre-approval, my buyers executed an Agreement of Sale for XXXX XXXX XXXX XXXX That contract was later withdrawn on XX/XX/year> for reasons unrelated to CrossCountry Mortgage. This created a clear opportunity for the lender to re-review the file and disclose any potential complications before we pursued another property. During this XXXX period, no such disclosures were made by XXXX XXXX. 
XX/XX/year> : Relying again on the same pre-approval and XXXX XXXX assurances, my buyers executed a new Agreement of Sale for XXXX XXXX XXXX. They paid {$550.00} for a home inspection performed by XXXX XXXX ( XXXX XXXX XXXX  ) on XX/XX/year>. At that time, they were still unaware of any issues that could make them ineligible. 
After contract execution, CrossCountry revealed new, material conditionsincluding a requirement for approximately XXXX months of cash reserves ( {$7500.00} ) and concerns arising from credit accounts and debt ratios. Internal XXXX findings later indicated Refer/Eligible, not the Approved/Eligible status represented in the pre-approval. 
XX/XX/year> : These late disclosures caused significant stress and confusion for the buyers. Regional Vice President XXXX XXXX later confirmed that the borrowers might qualify in the future after credit improvement, but not at this time and not for the XXXX XXXX property. 
________________________________________ XXXX. Why This Constitutes Negligence and Misrepresentation Misleading pre-approval : The letter falsely indicated Approved/Eligible FHA financing with no mention of cash-reserve or XXXX issues. 
Failure to disclose material conditions in time : After the first contract ended, the lender had a clear opportunity to re-evaluate and warn of any problems before the buyers entered a second contract and spent money on inspections. 
Post-contract surprise conditions : Introducing disqualifying conditions only after contract ratification caused predictable and avoidable harm to both the consumers and myself as their agent. 
________________________________________ XXXX. Impact For the buyers : They lost the home they wanted, paid {$550.00} for an inspection, endured emotional distress, and suffered embarrassment after informing their landlord and employer of a planned move and scheduled vacation for closing. 
For me ( the agent ) : I lost {$8100.00} in expected commission and sustained reputational harm, despite acting fully in good faith based on the lenders written representations. 
________________________________________ XXXX. Evidence Provided False and Undated Pre-Approval Letter and timestamped transmission email. 
AOS # XXXX ( XXXX XXXX XXXX XXXX ) executed XX/XX/year> ; terminated XX/XX/year> ( unrelated to lender ). 
AOS # XXXX ( XXXX XXXX XXXX ) executed XX/XX/year> ; later terminated due to loan failure. 
Form 1003 Loan Application, Form 1008 Summary, Credit Report, XXXX Findings reflecting unaddressed credit and reserve issues. 
Email threads among XXXX XXXX XXXX, processors, and myself ( including Spanish-language support ) documenting delayed disclosure and confusion. 
Home Inspection invoice confirming buyers out-of-pocket cost prior to disclosure of loan-killing complications. 
________________________________________ XXXX. Requested Resolution XXXX. Formal investigation into XXXX XXXX pre-approval and disclosure practices on this file. 
XXXX. Restitution : o {$8100.00} for my lost commission, and o {$550.00} reimbursement to XXXX XXXX for the inspection expense, both arising directly from XXXX negligent and misleading conduct. 
XXXX. Policy remediation : Require that all CrossCountry pre-approvals be dated, clearly indicate the actual XXXX result ( Approve vs Refer ), and list any material conditionssuch as reserve or credit requirementsbefore agents and consumers rely on them to enter contracts. 
________________________________________ CFPB Describe What Happened Summary CrossCountry Mortgage XXXX XXXX XXXX issued a false and undated FHA pre-approval stating Approved/Eligible up to {$300000.00} at 3.5 % down. Buyers XXXX XXXX and XXXX XXXX relied on this to sign XXXX Agreements of Sale. The first ( XXXX XXXX XXXX XXXX ) ended for unrelated reasons, but the lender never updated or disclosed problems. The second ( XXXX XXXX XXXX ) proceeded ; the buyers paid {$550.00} for an inspection. Only after contract did CrossCountry reveal new reserve and credit conditions, and XXXX results later showed Refer/Eligible., so the buyers were never approved/eligible. The deal collapsed, the buyers lost money, and I lost {$8100.00} commission. I request investigation, restitution, and policy correction requiring dated pre-approvals with full XXXX and condition disclosure.

Company response to consumer: Closed with explanation