Consumer complaint received 2024-06-10 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Application denials
Company: Lennar Financial Services, LLC
State: CA

Complaint narrative:
I am writing to formally submit a complaint regarding my recent experience with Lennar Mortgage, which I believe involves unfair lending practices and poor process management. Below is a detailed account of my situation : Loan Application Details : Application Start Date : XX/XX/year> Property Purchase Prices : {$250000.00} and {$260000.00} Loan Type : Mortgage for Investment Properties Summary of Issues : XXXX. Inconsistent and Poor Communication : The loan process was marked by poor communication from the lender. I received multiple, inconsistent reasons for the potential denial of my loan, each one changing after I provided additional proof and clarification in accordance with their requirements. 

XXXX. Unjustified Loan Denial : Despite providing comprehensive documentation, including tax returns, pay stubs, and utility bills as proof of residency, the lender ultimately chose to deny my loan based on an opinion-based decision. They referred solely to a letter of recommendation ( LOE ) and disregarded the substantial documentation I provided that met XXXX XXXX guidelines for investment property income. 

XXXX. Failure to Adhere to Regulatory Guidelines : The lenders refusal to use the appropriate documents as proof and their decision to rely on arbitrary methods for declining my loan application raises concerns about compliance with fair lending regulations. This approach appears to contradict the Equal Credit Opportunity Act ( ECOA ) and the Fair Housing Act ( FHA ). 

XXXX. Lack of Transparency : When I requested the proof of the XXXX used for the credit decision and their Home Mortgage Disclosure Act ( HMDA ) data, the lender declined to provide this information and stated they would look into it. This lack of transparency further complicates the issue and obstructs my ability to understand and address the reasons behind their decision. 

XXXX. Request for Regulatory Review : Given these circumstances, I am seeking a thorough review of this case to determine whether the lenders actions constitute a violation of fair lending practices. It is essential that lenders adhere to the established guidelines and provide clear, consistent, and fair treatment to all applicants. 

XXXX. Bait and Switch : Immediately after informing me that they would not approve my loans, they were quickly willing to pass my information to their other in-house lending option who was already informed of my personal information and had agreed would do my loan with no problems. This offer came with the same conventional loan but with a 2 % rate increase. 

I appreciate your attention to this matter and look forward to your assistance in resolving this issue. Please do not hesitate to contact me if you require any further information or documentation regarding my complaint.

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