Consumer complaint received 2024-03-07 00:00:00
Product: Mortgage — FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Application denials
Company: MM Cooperation, Ltd Co
State: GA

Complaint narrative:
XXXX XXXX XXXX, XXXX  XXXX, contacted me on XX/XX/XXXX. He represented himself as a mortgage loan expert and offered to help me secure a loan. I informed him that I had already applied with another company, but he assured me that he could get me a better rate and lower closing costs than anyone. He also claimed to know all the qualifications and regulations needed to be approved for a mortgage loan. Because of this reassurance, I applied for a mortgage loan at Motto Mortgage Corporation, XXXX  ID XXXX. I completed the mortgage application, which had my XXXX XXXX income at {$60000.00}. 
XXXX called me on the phone on XX/XX/XXXX. We had a long discussion reviewing my application, income, credit and debt. I disclosed to him that I had left a XXXX XXXX and was XXXX since XX/XX/XXXX. He assured me that this would not be an issue as long as I made enough income in the few months I had been a 1099 in XXXX. Since it was early in the year, I had not yet filed my taxes. He told me that since my XXXX was less than a year, I needed to go ahead and file my tax return for XXXX. I reiterated to XXXX XXXX that I only made {$60000.00} in 1099 income in XXXX. He told me {$60000.00} was not enough income to get the home in the price range I requested, {$370000.00}. He then asked if I had received a 1099 from my employer yet and I told him no. At this point, he tells me, " I am not really supposed to tell you to do this. So, that's why I'm calling you and not texting you this. '' At this point, he instructed me to file my XXXX taxes showing {$900000.00} in 1099 income. He told me this was what I needed to do to qualify for my loan. He instructed me to falsify my income, set up a false payment plan, and then amend my taxes once I moved into my new house. He said, {$90000.00} should be enough to qualify you. I will also send you what you need to put as your deductions so your tax bill isnt too high for the payment plan. 
I was very hesitant to falsify my taxes and I reminded him again that I only made {$60000.00} and my 1099 would only reflect that when my employer mails it. He said, You can always amend your tax return with your real 1099, once you've already moved into your new house. He assured me that as long as I fill out my taxes like he said, and gave him all the paperwork he asked for, I would be able to buy my home. I trusted him and believed him as a mortgage loan expert he claimed to be. He emailed me the Schedule C Tax Return Calculator with what he said it needed to say to qualify as an attachment in an email. 
On XX/XX/XXXX, XXXX sent me my 1st pre-approval letter and only at this point do I start looking at houses with my realtor. I wanted to make sure I met the requirements and secured a loan before I started taking my XXXX XXXX XXXX son shopping for our new home. XXXX sent me multiple fee sheets for houses we went to see. He was always assuring me that the loan would close as long as I filed my taxes the way he told me and sent him my payment plan confirmation. 
When we finally found the home of our dreams, XXXX XXXX XXXX, XXXX sent us a formal pre-approval letter so we could place an offer. 
We officially went under contract on XX/XX/XXXX. At this time, XXXX informed me that {$90000.00} was not enough income to support the house. He further instructed me to raise my income to {$110000.00} and then file my taxes. I did what was requested and was in shock when XXXX XXXX showed me my tax liability of {$27000.00}. I told him that I did not have this kind of money and I was worried about owing this much in taxes. He told me to set up a payment plan at {$300.00} a month and then amend it after closing and I am all moved into the new house. I sent him a copy for reference. Again, falsifying my federal taxes to qualify for the FHA loan. I did as he instructed and it resulted in me having to pay taxes on money I did not even earn. 
XX/XX/XXXX was the first time XXXX mentioned the underwriter had not yet approved my employment being less than 2 years. Through the process, he kept telling me that they would waive the two-year requirement and not to worry about it. On this very day, he assured me by saying, I know they will. 
When we hadn't heard anything from XXXX for the rest of the week, my realtor contacted him and XXXX XXXX for a financial update on XX/XX/XXXX. We were supposed to close in less than 2 weeks at this point. The following day, XX/XX/XXXX, we got an email from XXXX XXXX, completely denying my loan. I was heartbroken and devastated. I tried to call XXXX but was unable to reach him. The email was shocking and I was completely blind sighted. I could not understand how this could have happened. After the denial, I looked up the FHA guidelines myself. It very clearly states that FHA loans, if the period of XXXX XXXX  is less than one year, the income from the borrower may not be considered effective income. 
How in the world did I ever meet this? I became XXXX XXXXXXXX  in XXXX and XXXX knew this. I did not qualify for the FHA loan based on the length of time of my XXXX XXXX per the lender. 
After the denial, I was absolutely distraught. I had already given a 60 day notice and bought out of my rental lease. I tried desperately to find another lender that could help me close on our home so we wouldnt be homeless. I reached out to other lenders and learned that without a 1099 from my employer, an underwriter would want to see my bank statements with the deposits equaling what I filed on my taxes. Because XXXX instructed me to falsify my taxes, I had NO CHANCE at having my mortgage approved by any reputable lender. There is a huge discrepancy in my income taxthe bank statement deposits and XXXX reported income. I have been told that I will not be able to move forward in buying a home until I amend my taxes, and handle any subsequent audits/ tax liability from XXXX orchestrated tax fraud. 
The fate of my loan was decided on XX/XX/XXXX when XXXX told me to commit fraud to qualify for this loan. I received multiple pre-approvals, and my realtor was assured everything was fine up until XX/XX/XXXX. The truth is, I never made enough money to get a loan this size. I could have and would have accepted a NO from XXXX. An ethical, responsible mortgage loan officer would have told me to wait until I was truthfully eligible for a loan of this size. After looking at the guidelines for myself, it's clear to me that I did not make enough income to qualify for a loan this size. I did not qualify for an FHA loan at all and I am appalled at how unethically and recklessly my loan was handled. 
I've rented for XXXX years, trying to save and provide for my family. I am a single mom, XXXX  XXXX XXXX XXXX, and only wanted to get a home for me and my son. I have been sobbing for the last two weeks. I have not been able to eat or sleep. I missed 4 days of work because of how XXXX XXXX  this has made me. My XXXX XXXX XXXX child is crying and heartbroken. My son had already picked out his room and started telling his XXXX  friends that he was moving into his new house. 
When I tried to resolve this issue with Motto Mortgage in XXXX, GA and Motto Mortgage Corporate, I got no help, compassion, or resolution. Ive gone back and forth with Motto Mortgage and no one is being held accountable for their unethical conduct. I did not start seeing houses or investing time and money until XXXX pre-approved me. XXXX XXXX and Motto Mortgage acted recklessly, and cost me over {$36000.00}. I am a single mother and this financial loss is devastating and an unacceptable outcome.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation