Consumer complaint received 2026-06-06 00:00:00
Product: Mortgage — VA mortgage
Issue: Closing on a mortgage — Closing disclosure or other related disclosures
Company: C2 Financial Corporation
State: CA

Complaint narrative:
I am filing this complaint against C2 Financial Corporation regarding a Veterans Affairs ( VA ) home loan that closed in late XXXX. The complaint concerns a {$18000.00} VA funding fee that was financed into the loan even though avoiding or recovering that fee was repeatedly identified as a top financial priority before closing. At the first meeting on XX/XX/XXXX, I made clear that the VA funding fee waiver or refund was a top priority because I was awaiting a VA disability rating. The lo an officer ( LO ) acknowledged that if we closed after my disability effective date, the funding fee could be waived or refunded. The LO discussed closing-date options, stated that a later closing would be the best scenario for avoiding the fee, and said she would consult a VA specialist and continue working on the issue. Over the following weeks, the LO continued to communicate as though she was actively monitoring the funding fee issue and coordinating with underwriting. XXXX XXXX XXXX XXXX she stated that XXXX XXXX was the day we close and that the option to waive the fee would have required closing a few days later than XX/XX/XXXX. She did not disclose that the legal loan closing date would actually be XX/XX/XXXX. The Closing Disclosure shows the loan legally closed on XX/XX/XXXX, with a disbursement date of XX/XX/XXXX. The VA disability effective date was XX/XX/XXXX. Because the legal closing date came before the disability effective date, the VA funding fee refund is not available. Had the loan closed just a few days later, or had the loan officer clearly explained that XXXX XXXX XXXX XXXX the operative date, I could have made an informed decision about delaying closing. The VA funding fee of {$18000.00} was financed into the loan. As a result, we are paying principal and interest on a fee that should have been avoided or refunded if the timing had been handled correctly. After discovering the issue, I contacted the LO on XX/XX/XXXX and asked her to initiate a correction through the VA Funding Fee Payment System. In that message, I stated that the loan closing date was XX/XX/XXXX because I still believed that was the relevant closing date. The LO did not correct that misunderstanding. On XX/XX/XXXX, she apologized and said she would get moving on it. On XX/XX/XXXX, she first stated that the matter was being worked on, then later forwarded a response from the lender telling me to call the XXXX XXXXXXXX XXXX XXXX myself. I called the VA XXXX XXXX XXXX on XX/XX/XXXX. During that call, the VA confirmed that the refund was not available because the loan legally closed before the disability effective date. I filed a formal written complaint with C2 Financials ' Client Relations team on XX/XX/XXXX. I received no response for 18 days. When I followed up on XX/XX/XXXX, XXXX 's help desk said they did not recall my email. That same evening, C2 Financials ' Chief Operating Officer ( COO ) personally emailed asking if I had seen a response from the LO. The LO had contacted me, but her response did not address the underlying issue or offer any actionable path forward, which is why I had escalated to Client Relations in the first place. On XX/XX/XXXX, I replied directly to the COO, explained the full situation, and offered to provide all supporting documentation. He did not respond. As of today ( XX/XX/XXXX ), C2 Financial has provided no substantive resolution at any level.

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