Consumer complaint received 2025-12-03 00:00:00
Product: Mortgage — FHA mortgage
Issue: Closing on a mortgage — Changes in loan terms during or after closing
Company: AMERICAN FINANCING CORPORATION
State: PA

Complaint narrative:
DETAILED COMPLAINT : XXXX. NEGLIGENT ADVICE THAT DESTROYED MY CREDIT ( XX/XX/year> ) Initial situation : Credit score : XXXX ( with disputes on credit report ) Approved for FHA loan Told I needed ~ {$12000.00} cash to close Purchase contract signed specifying " 30-year fixed FHA loan '' Processor XXXX XXXX instructed me : " Remove all credit disputes to get approved '' I asked if this would affect my credit score She assured me this was necessary for approval She NEVER warned me my score would drop significantly I complied with her professional advice : Removed all credit disputes as instructed Trusted her expertise as a mortgage professional Result of following her advice : Credit score DROPPED from XXXX to XXXX ( XXXX drop! ) This disqualified me from better loan terms Now told I need 5 % down instead of 3.5 % Now told I need XXXX loan instead of XXXX Cash to close increased from ~ {$12000.00} to {$19000.00} {$7200.00} MORE than originally disclosed! 

This was professionally negligent advice that directly harmed my loan application and my credit. 

XXXX. BAIT-AND-SWITCH ON LOAN TERMS ( XXXX 2024 ) What I was originally told ( XX/XX/year> Loan Estimate ) : 30-year fixed FHA loan ( as specified in purchase contract XXXX Approximately {$12000.00} cash to close Rate : 5.99 % What I'm now being told ( XX/XX/year> ) : XXXX loan ( NOT XXXX as contracted ) {$19000.00} cash to close ( NOT {$12000.00} ) Must pay {$1700.00} in discount points Must have 2 months reserves 60 % increase in cash needed ( {$7200.00} more! ) This is classic bait-and-switch : Lured me in with {$12000.00} requirement Got me to sign purchase contract Got me to deposit {$1000.00} earnest money Got me to pay for appraisal and inspection Got me committed to the property THEN changed the terms dramatically Now I'm trapped : pay {$7200.00} more or lose earnest money and house XXXX. UNAUTHORIZED AND HARMFUL CREDIT REPULL ( XX/XX/year> ) Today ( XX/XX/year> ), American Financing repulled my credit without proper authorization. 
Result : Credit disputes are now BACK on my credit report This contradicts the original advice to remove them Creates additional credit inquiry ( further damaging my score ) Places me back in the same position as before I never authorized this credit repull. 
This appears to be : Either incompetence ( they don't know what they're doing ) Or intentional sabotage ( trying to kill my loan ) XXXX. REFUSAL TO PROVIDE REASONABLE SOLUTIONS ( XX/XX/year> ) I have {$12000.00} available for closing. They require {$19000.00}. I am short {$7200.00}. 
I requested reasonable solutions : A. Remove optional {$1700.00} discount points These are voluntary fees to buy down rate Not required by FHA Would save me {$1700.00} REFUSED B. Provide lender credits Accept higher interest rate in exchange for credits FHA explicitly allows this ( HUD XXXX XXXX ) Standard industry practice Would bring cash to close down to {$12000.00} Loan officer said he was " working on it '' for a week REFUSED C. Help negotiate seller contribution FHA allows up to 6 % seller contribution ( {$11000.00} maximum ) My request of {$5400.00} is well within limits Asked lender to contact listing agent REFUSED TO HELP D. Manual underwriting or rapid rescore Explore options to improve approval terms REFUSED Instead, their response : " We won't do anything to bring closing costs down '' No alternatives offered No solutions provided Take it or leave it XXXX. PATTERN OF POOR COMMUNICATION Throughout this process : Loan officer repeatedly says " I'm working on it '' without providing specifics Promises information " today '' or " tomorrow '' - never delivers Does not return calls promptly Only responds when I escalate through corporate website live chat Provides vague non-answers instead of concrete solutions Makes me feel like I'm bothering them by asking questions 6. VIOLATIONS A. Unfair and Deceptive Practices ( UDAAP ) Bait-and-switch on loan terms Changed terms after I was committed to purchase Negligent advice that harmed my credit and loan eligibility B. Truth in Lending Act ( TILA ) Violations Failed to accurately disclose costs upfront Loan Estimate of ~ {$12000.00} was materially inaccurate Now requiring {$19000.00} ( 60 % more ) XXXX Professional Negligence XXXX XXXX gave advice without understanding consequences Directly harmed my credit score and loan terms Should face disciplinary action XXXX Fair Credit Reporting Act ( FCRA ) Concerns Repulled credit without proper authorization Created additional inquiry damaging my score E. FHA Guidelines Violations Refusing to offer standard FHA options ( lender credits, seller contributions ) Changed terms specified in purchase contract ( XXXX to XXXX ) XXXX. HARM CAUSED Financial : {$7200.00} additional cash required that I don't have Risk of losing $ XXXX XXXX money Appraisal fee paid : $ XXXX Inspection fee paid : $ XXXX Time and emotional distress : Incalculable Credit score damaged : XXXX XXXX ( XXXX points ) Additional credit inquiry from unauthorized repull Emotional : This is my first home purchase This is my dream home for my family We've been living in difficult circumstances This was our chance for stability Now being destroyed by predatory lending practices Legal : Trapped in purchase contract Seller expects closing XX/XX/XXXX ( 20 days away ) If I can't close, I lose earnest money and face potential breach of contract If I try to find new lender, XXXX not have time to close XXXX. WHAT I'M REQUESTING Immediate relief : A. XXXX XXXX XXXX to honor original loan terms : XXXX FHA loan XXXX specified in purchase contract Approximately {$12000.00} cash to close as originally disclosed Close by XX/XX/year> OR B. XXXX XXXX XXXX to provide reasonable solutions : Remove {$1700.00} discount points Provide {$5400.00} in lender credits Help negotiate seller contribution Bring cash to close down to {$12000.00} OR XXXX Release me from this loan with compensation : Return all fees paid ( appraisal, inspection, etc. ) Compensate me for credit damage Compensate me for earnest money at risk Allow me time to find new lender Long-term accountability : XXXX Investigate American Financing Corporation 's practices : Are they doing this to other borrowers? 
Pattern of bait-and-switch? 
Pattern of negligent advice? 

XXXX XXXX XXXX XXXX : Report to NMLS Suspend or revoke her license She should not be advising borrowers XXXX XXXX XXXX XXXX : Report to XXXX  Poor communication Refusal to provide solutions XXXX XXXX American Financing Corporation : For XXXX violations For predatory lending For harming consumers XXXX. SUPPORTING DOCUMENTS I can provide : Purchase agreement showing " 30-year fixed FHA loan XXXX Original Loan Estimate from XX/XX/year> Current Loan Estimate showing {$19000.00} cash to close Credit reports showing score drop ( XXXX XXXX ) Email/text communications with XXXX XXXX XXXX communications XXXX XXXX XXXX Timeline of events XXXX XXXX URGENCY This is time-sensitive : Closing date : XX/XX/year> ( 20 days away ) Need resolution IMMEDIATELY Every day of delay makes situation worse Risk losing home, earnest money, and fees paid I am requesting expedited review and intervention.

Company response to consumer: Closed with explanation