Consumer complaint received 2025-02-17 00:00:00
Product: Mortgage — FHA mortgage
Issue: Closing on a mortgage — Closing disclosure or other related disclosures
Company: MORTGAGE 1 INCORPORATION
State: MI

Complaint narrative:
On XX/XX/XXXX, I closed on an XXXX XXXX loan with Mortgage One Inc. During this process, multiple red flags were downplayed, ignored by, or misrepresented by those who owed a fiduciary duty. As a result, I was misled and ultimately pressured into proceeding with a loan that was not in my best interest. The key concerns include : XXXX. XXXX XXXX and XXXX : My real estate agent pressured me into moving forward with the purchase without a certified home inspection, even after the XXXX & XXXX inspection revealed imminent failure and required full replacement. My agent also insisted that I use Mortgage One Inc. as my lender. The reasoning provided was : - That " shopping around '' for a lender would negatively impact my credit score. 
- That a local lender could expedite the process. 
- I was repeatedly assured that the home was in good condition, despite later discovering major health and safety hazards. 
My agent maintained regular and inappropriate communication with the lender regarding my financial status and loan qualification. The lender and my agent worked together to structure a high-dollar loan, despite the home being unsafe and unlivable in its actual condition. There is also potential collusion with my agent and the selling agent, as my original offer appears to have been accepted ( XXXX data shows pending date of XX/XX/XXXX ) despite ongoing negotiations for 2 days before going under contract. 

XXXX. XXXX XXXX and XXXX on the condition of the property. Despite the disclosure indicating the house had no issues, multiple defects were uncovered after closing, such as : - Evidence of flooding & mold throughout the crawl space, and lack of proper vapor barrier/insulation - Evidence of recent repairs to the structure done incorrectly, contributing to further structural decline - Multiple ongoing active water leaks throughout the home, contributing to further mold in the living areas ( kitchen, bathrooms, subfloors, behind walls ) - Structural decay to the extent the back side of the home is caving in and windows are no longer sealed from the outside elements due to wood rot - Rodent infestation - Property sits on a high water table and experiences flooding during wet times of the year XXXX. Septic System Replacement Issue - The lender nor the XXXX ever mentioned the required septic system replacement, despite it being a requirement in the sales contract. 
- My agent assured me that funds would be held in escrow if the work wasn't completed, but this never happened. 
- The lender, seller, and agents failed to verify that the work was completed as required. 

XXXX. XXXX XXXX Concerns - My agent admitted in passing that the lender " picked the XXXX himself '', which suggests a conflict of interest in the appraisal process. 
- The XXXX assigned an " as-is '' value of {$370000.00} despite the following major health and safety issues discovered immediately after closing on XX/XX/XXXX : - Rodent infestation throughout the home. 
- Multiple active water leaks. 
- Mold contamination in the crawl space, under the kitchen sink, and throughout the primary bathroom. 
- Improper grading around the foundation and high water table issues. 
- Severely deteriorated supporting joists in the crawl space due to long-term moisture exposure. 
- XXXX with wood rot, failing to seal properly, creating energy inefficiency and additional water intrusion. 
- Despite these clear structural and safety issues, some of which are evident in the appraisal photos, the XXXX falsely reported that the home was " well maintained '' and determined its effective age to be only 20 years. 

XXXX. Loan Interest Rate and Closing Fees Issues- My Loan Estimate ( XX/XX/XXXX ) stated an interest rate of 6.99 %, but this was shortly thereafter ( XX/XX/XXXX ) increased to 7.125 % without a clear explanation. 
- I paid over {$2000.00} in points at closing, yet my interest rate was not reduced nor were these fees explained to me. 
- Closing fees were so close to the maximum allowable amount that the lender had to apply a credit to keep the loan within regulatory limitsresulting in a mere {$5.00} credit. 
- Given my high Debt-to-Income ( DTI ) ratio, the lender failed to conduct adequate due diligence to ensure I could sustain the payments or that the home met FHAs minimum property standards. 

XXXX. Manipulation of Appraisal Dispute Process When I received the appraisal report, I was only given XXXX options : - Walk away from the deal. 
- Work with the sellers agent to challenge the price and increase the appraisal value. 
- At no point was I informed that I could challenge the appraisal to lower the valuation based on the homes condition. 

XXXX. Questionable Loan Documentation and HUD Compliance Issues - After reviewing the closing documents post-closing, I found that I had signed a blank XXXX form ( Direct Endorsement Approval for FHA XXXX ). 
- On XXXX XXXX XXXX certification ; the section requiring the CEOs signature was instead signed by the loan originator, which is improper. 
- When I recently called to request clarification, Mortgage One Inc. dismissed my concerns and refused to provide corrected copies, stating that " this was normal. '' XXXX. Post-Closing Lender and Servicer Failures- After closing, I reached out to my loan XXXX regarding the homes unlivable condition and was told that nothing could be done. 
XXXX Mortgage One Inc. has seemingly failed to self-report defects that, under HUDs defect taxonomy, require lender disclosure and correction. 
- The loan servicer ( XXXX Mortgage XXXX XXXX XXXX XXXX multiple errors, including : - Paying my property taxes twice, which disrupted my escrow account. 
- Failing to renew my homeowners insurance, despite having the correct information and receiving the renewal. 
- Force-placing insurance on my home, which provides no personal coverage, only protecting the structure for the lenders benefit. 

XXXX. Severe Financial Harm and Foreclosure Risk Due to Lender and Servicer Negligence - Due in part to escrow mismanagement, unexpected repair costs, and ongoing legal expenses, I experienced a period of loan default, placing me at risk of foreclosure. 
- The estimated cost of necessary repairs has exceeded {$100000.00}, and though some of the repairs have been completed, I am not able to complete them all as my regular mortgage payment exceeds 60 % of my net income. 
- The servicers failure to properly manage escrow, including the double tax payment and failure to renew my homeowners insurance, further destabilized my financial position. 
- Despite my efforts to remain in good standing, the cumulative financial burden caused by these negligent actions has placed my home at risk.

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