Consumer complaint received 2025-06-29 00:00:00
Product: Mortgage — FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Delays in the application process
Company: Neighborhood Assistance Corporation of America ("NACA")
State: MO

Complaint narrative:
I initially signed up for NACA on XX/XX/XXXX, the annual membership fee is {$36.00} and you pay for your credit reports to be run. I had a counselor named XXXX XXXX at the time. We met and she was very informative, she told me I would need to wait until my XXXX  XXXX bankruptcy discharge date was two years old. That would be XXXX of XXXX. I paid another membership fee for XXXX  and was assigned a new counselor, XXXX XXXX, we met for the first time on XX/XX/XXXX. XXXX XXXX was very informative and professional. We went over my action plan and set a course of things I needed to do by the time my file could be sent to underwriting. On XX/XX/XXXX, my Physician approved me to be on XXXX due to a XXXX XXXX I communicated that with XXXX XXXX and we set a meeting date of when I would have my first paystub from my current employer. There was some initial confusion on my return to work date on my behalf. My XXXX ended on XX/XX/XXXX, but HR approved my leave through XX/XX/XXXX with an XXXX XXXX XXXX XXXX, due to my doctor approving my return to work day being XX/XX/XXXX. So I met with XXXX XXXX on XX/XX/XXXX, because I thought that would be my first payroll check and then again on XX/XX/XXXX. We went over some things and he sent my file to underwriting on XX/XX/XXXX. My employer uses XXXX XXXX XXXX for employment verifications and my return status has not been updated. The next week I received a couple of emails from XXXX XXXX that are usual Underwriting inquiries. On XX/XX/XXXX, XXXX XXXX emailed asking for tax transcripts to show my tax debt is paid in full, also for a letter of explanation as to why I had credit inquires within the last 120 days, he asked that I re-link my bank accounts, and if I own a home currently, lastly he said underwriting needed a letter as to why I was on leave. NACA states that you are not to apply for any new line of credits when applying. But, during my XXXX I did not know when I would return to work, so I was not sure I would even still be eligible for the loan. So, I applied for a couple of cash back rewards credit cards. I provided a letter of explanation in regards to the inquiries and let NACA know I was denied two cards and was approved for one through XXXX, an existing creditor that offered me a cash back card, due to my payment history with them, but I have not used the card and provided proof that the card had not been used. Also, I did not disclose my medical condition, as that is a HIPAA violation for a company to want to know why I was on XXXX specifically. I only disclosed that my physician approved XXXX, underwriting asked for copies of my most two recent short term XXXX pay stubs. I submitted all of the requested information. I let XXXX XXXX know that I have owned three properties, none of which I currently own. I lost one to bankruptcy in XXXX, I submitted a 1099-C to show I no longer owned that property. Another property I purchased in XXXX and sold in XXXX, I submitted a closing settlement for that property. The first home I owned, I did not have any type of documentation for, it was also surrendered in Bankruptcy, but I did upload XXXX XXXX XXXX Recorded of Deeds Real Estate Tax Information, that shows that current owner. This information is public information and can be accessed by anyone. On XX/XX/XXXX, XXXX XXXX emailed to ask why my account had a debit of {$940.00} on XX/XX/XXXX, I explained that was a one time expense for my medical benefits after my XXXX had run out, I owed the employee and employer portion as our benefits are paid a month in advance. Again on XX/XX/XXXX, XXXX XXXX emailed inquiring on which property was the loans with XXXX XXXX XXXX XXXX XXXX and XXXX XXXX XXXX XXXX for, he included a note from underwriting stating that an in-depth review of my credit report must be completed, because I have a property that is older. This was the same property that I sold in XXXX, that I had already submitted a closing settlement statement for. Both loans were from XXXX, a line of equity and then a refinance. At that point, I felt as if underwriting was looking for any excuse not to approve me and digging back to a credit report entry from XXXX, not even the Internal Revenue Service requires tax records to be maintained that are that old. IRS usually requires you maintain at least three previous tax years documents, in case of an audit. I was able to locate the closing disclosure from XXXX and sent it to XXXX XXXX. While my email tone was not professional, I was upset because I was honest about the properties that I have owned and I felt that NACA felt I was lying about owning a property and revisiting a property I had already submitted paperwork for. I replied to XXXX XXXX on XX/XX/XXXX, with documentation. During the next week, my file was not updated on NACAs website, and I received no response from XXXX XXXX. On XX/XX/XXXX, I did some research online and saw that other consumers had written reviews about having issues with NACA and saw a staff member of NACA had left their email to escalate any concerns. I emailed XXXX XXXX on XX/XX/XXXX with my concerns and forwarded my email chain between XXXX XXXX and I, he replied right away, but I never had any other follow-ups from XXXX XXXX. On XX/XX/XXXX, I emailed XXXX XXXX, that I had uploaded my XX/XX/XXXX paystub, being that was the first full paystub, although I was told by XXXX XXXX as long as I had a paystub showing I had returned to work that he could forward my file to underwriting. Also, XXXX XXXX XXXX updated my status to active and I forwarded that information to XXXX XXXX on XX/XX/XXXX. I am currently in an apartment and my lease ends on XX/XX/XXXX, I was hoping to be approved and qualified within a couple of weeks of my file being sent to underwriting, so that I would not be homeless and need to pay for a hotel during the interim. But, it has been quite the contrary. Underwriting is not making any progress on my file and despite me uploading all requested documents, they still try to make it seem that I am trying to falsify the program and take advantage of the no closing costs and no down payment incentive. On XX/XX/XXXX, I decided to go with a reputable lender, as my integrity is worth more to me than being investigated and interrogated my NACAs underwriting department. So I emailed NACA services and asked for my file to be deleted, but the auto-reply stated that I needed to call the main number, which I did and left a voicemail due to no one being available to answer my call. So, I went in and deleted all the files that I could and unlinked my bank account. XXXX replied to my email related to my paystub upload email on XX/XX/XXXX, I replied that I decided to go with another lender. I feel that NACA is a very misleading organization and they will go in circles with your file until you just either renew your lease or go with another lender. Granted, {$36.00} is not much, but if you mislead millions of consumers with the false hopes of home ownership you have made millions in membership fees. I waited since XXXX  with high hopes of being approved and being able to own a home again after a tumultuous year in XXXX, where my vehicle was shot up and I was almost killed, my Father passed away and I lost my home and had some severe XXXX and XXXX  due to all of those events. I worked hard to rebuild my credit and try to obtain a home for my son and I, being a divorced mother with no help. It does not seem fair or ethical to be allowed to treat consumers in this manner. I am working on a time sensitive schedule and did everything required of me by NACA and still am left to try to get a loan with a different lender.

Company response to consumer: Closed with explanation