Consumer complaint received 2025-10-01 00:00:00
Product: Mortgage — VA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Changes in loan terms during the application process
Company: Chrysalis Holdings LLC
State: OK

Complaint narrative:
In XX/XX/XXXX, my husband and I decided to refinance our home, which was almost paid off, to a VA XXXX refinance loan. This would allow us to pay down our existing high-interest-rate debt, remove my mother-in-law from the loan and deed, lower our interest rate, and undertake some home renovations. I did a general inquiry online, and XXXX contacted me. I immediately trusted NewDay USA because they advertised that the XXXX supported them and took pride in XXXX. XXXX XXXX made promises he did not keep on behalf of NewDay USA. He promised the process would be quick, pledged to pay off all my debt, and give me cash to renovate my home at the full amount my house was worth. I was quoted at 7.8 %. 
I trusted XXXX because of how they represented the military and its XXXX. At some point during the refinance process, my interest rate increased without my knowledge. I was not offered a 100 % cash-out refinance, my mother-in-law was not removed from the deed, and I was inundated with excessive loan documents. I received a new packet via XXXX every few days from XXXX. I realize now they were trying to confuse me to take advantage of me. I am still being misled to this day. I had a sewage backup in my home back in XXXX. I was in a loan modification because I had missed some payments due to a family emergency that set me back. 
I called XXXX and asked them for a forbearance, and they told me this was not an option, when in fact, I believe it was an option. My mother-in-law lived XXXX miles away from us in XXXX direction. So about an XXXX  round trip, and was bedridden. My husband and I had to care for her. Often, we had XXXX XXXX over more than once a day to ensure she was cared for. My husband lost time at work, and the snowball effect on our finances has been significant. XXXX offered me a loan modification that would lower my interest rate, but nothing else would change. On XX/XX/XXXX, I went into a loan modification. My loan modification process began with our first set of documents, which required my mother-in-law 's signature. She was supposed to be removed from the deed. I contacted XXXX, and they needed me to send a death certificate, but they would never answer my question as to whether she was on the deed. I know she was because why would she need to sign the new loan modification documents? During the loan modification process, I was not required to make any payments on my house until the modification was complete. Yet, I had to send {$3000.00} in money orders, which I do not see posted to my account to date. Not to mention, they were reporting me delinquent to the credit bureaus and wreaking havoc on my credit. The next set of documents for loan modification I received was supposed to have my mother-in-law 's name removed. I signed and sent them back. Then, XXXX contacts me and says they made a clerical error and will be changing a disclosure on the modification. That still did not matter because I received another call and another set of documents with another change on them. They had to put my husband as the one who was not responsible for the loan if I became deceased. I am not sure how accurate any of these corrections were, but I began to see a pattern of inundating me with paperwork, and I became very suspicious. I began researching my bills and started asking questions. That is when I noticed my interest rate was 7.9 %. I was confused. Not what I was quoted at, nor promised. I saw " corporate advances '' on my bill. I called and asked what these were for. The first guy was a customer service representative. He had no clue, but came back and told me they were legal fees from when the company had to drive by my house to verify I still lived here. What? I was in a loan modification. Why would someone need to drive by to confirm if I still lived here? He was then eager to rush me over to the loan modification because he could not answer my questions. He sent me to the loan modification department, where I spoke to a supervisor who also could not answer any of my questions. He had submitted a request for a supervisor to contact me and answer my questions. It took them several days to contact me, and I still have no answers to any of my questions. He was supposed to call me back, but I have not heard a peep from anyone. Not only did I have " corporate advance '' charges that no one could verify, but I also had a " suspense account '' with funds in it. They told me that when I paid extra, the money went into a " suspense account '' until I had a full payment to make a regular payment with. The other representative told me it only stayed in there for XXXX  days before being applied to the principal. 
However, a representative on XXXX of my calls to make a payment stated that any overage on my payment would be immediately applied to my principal. XXXX different versions. Who do I believe? None of them. Suppose you recall the sewage backup in my home during the loan modification, which heightened my suspicions and prompted me to investigate the handling of my mortgage by NewDay USA. Because I was in a loan modification and had more than {$36000.00} in damages to my home, when my insurance company cut the check, it had both my name and XXXX 's name on it, as it was for {$27000.00}. They have a vested interest in my property. When I filed a property claim on their website, they informed me that they would put my money in a restricted escrow account and divide it into XXXX installments after I provided them with quotes, a signed contract they offered, and other required documents. 
I was furious. I should not have still been in loan modification ; they could not get the paperwork correct. Again, not my fault. However, I was not given any other option. They would not provide my XXXX with his 30 % upfront fee after I made a written request to them, along with proof from my XXXX. They sent me 25 %. 
Additionally, I had to pay for overnight shipping labels or wait XXXX to XXXX business days for each check to be processed, and another XXXX to XXXX  days in the mail if I did not provide the labels. I was told I could only use XXXX at this time. I had to wait XXXX to XXXX  days for inspection. XXXX to XXXX  days for inspection results to be uploaded and approved, XXXX to XXXX  days for the check to be processed and mailed, XXXX to XXXX  days for the check to be sent to me, and XXXX  days for my check to be processed and funds released by the bank. I have lived in a hotel for XXXX of the XXXX months thus far, and the remaining XXXX months, I have lived in my home without a kitchen. I am not sure if you have ever tried to remodel a home with less than all the money to buy the necessary supplies. I have missed sales, and eating out is costing me a pretty XXXX. My XXXX quit because he was losing jobs due to the process taking too long to secure funds, and the lack of ability to obtain all the necessary materials, as well as manage the project effectively. That left my husband and me to get the job done, which meant my husband lost months at work, making sure his new business became profitable. I tried reasoning with XXXX, begging, anger, and compromise, among other approaches. They did not care how much money this was costing my husband and me. To add insult to injury, when we reached the 75 % mark, we did our inspection, and they did not send the final 25 %. So, I called them, and they told me I needed a score of 76 % to receive the remaining funds. So, my husband and I worked into the night to reach the 76 % mark, rushed the inspection with the inspection company, and XXXX sent approximately {$270.00} ( I do not recall the exact amount ). I call them again. I am on the phone with them several times throughout the day, and XXXX call lasted XXXX hours, most of which I spent on hold. I was informed that I needed to reach 100 % to receive the remaining funds. Different than what I was told before, but I was furious. How do I complete a job to 100 % without having 100 % of the resources? I spoke to people from all departments, who have recorded conversations, stating that I needed to provide an estimate of the cost to replace my kitchen, and it would be submitted for review and approval or denial. They have delayed construction for XXXX weeks this time, and I still do not have the funds, but they are on their way. None of this makes any sense to me. That money was for me to renovate my home. I ended up having another snowball effect, and bills were late, and I was paying late fees and living without a kitchen and an XXXX  child. My husband lost time at work to ensure his new business was a success. He could not afford to buy a product that would cost him customers, and his assets were lost because of what XXXX had done to me and my family. 
I still have no resolution on the mortgage statements. They refused to give them to me. I forgot to mention, I was no longer in a XXXX fixed-rate mortgage. Remember, I was only supposed to have my interest rate adjusted. No, they decided without my approval to put me in a XXXX capitalized something or other. I still have no idea what they are doing with my mortgage, but what I am sure of is that they are not playing fair, overcharging me, charging me late fees when I am not late ( per a supervisor I spoke to ), and put me further in debt with the handling of my loss to my home and delaying construction, which I am certain is illegal or frowned upon in the state of XXXX. I also forgot to mention that someone forged my name on XXXX of the documents I signed at closing with a notary. I received an email from XXXX stating my signature looked different from the rest on XXXX of the closing documents. I have the email, and I will share it with you. However, should I not have signed that document, someone forged my signature with a notary, as I did with the other closing documents? I feel betrayed, angry, and disgruntled by how XXXX has treated me. They have put me further into debt with their misleading tactics and false representations. How can someone who represents the XXXX  and its XXXX mislead us into thinking we are being told the truth and provide us with all our options instead of options that make them money? It is shameful, and my debt is worse than when I switched over to them. I have more documents to submit, but it will not allow me to upload anymore plus I have phone recordings as well.

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