Consumer complaint received 2026-04-15 00:00:00
Product: Mortgage — FHA mortgage
Issue: Closing on a mortgage — Trying to communicate with the company to fix an issue with the loan closing
Company: Movement Mortgage LLC
State: GA

Complaint narrative:
Company : Movement Mortgage Product : Mortgage / FHA Loan Application Complaint Narrative : I entered into a purchase agreement on XX/XX/XXXX to purchase a new construction home at XXXX XXXX XXXX, XXXX, GA XXXX ( XXXX XXXX XXXXXXXX XXXX, built by XXXX XXXX XXXX XXXX XXXX ). My purchase agreement specifically requires FHA financing. Movement Mortgage is the builder 's affiliated preferred lender and was designated in connection with this transaction. XX/XX/XXXX XXXX XXXX Discovered, No Adverse Action Notice Issued On XX/XX/XXXX, Movement Mortgage loan processor XXXX XXXX emailed me notifying me that my SSN returned a XXXX XXXX tied to a Small Business Administration loan in default, which made me ineligible for FHA financing. This constituted the discovery of an FHA-disqualifying condition. Under the Equal Credit Opportunity Act ( ECOA ) and Regulation B ( 12 CFR Part 1002 ), Movement Mortgage was required to issue a written Adverse Action Notice within 30 days. No such notice was ever issued. XX/XX/XXXX First Formal Written Request for Adverse Action Notice Refused On XX/XX/XXXX, senior loan officer XXXX XXXX ( XXXX XXXX ) pressured me via email to resolve the SBA default or she would convert my loan to conventional, asking " Are you able to in enough time before closing? Otherwise I will need to flip the loan Conventional. '' I responded in writing the same day formally requesting a written FHA denial or ineligibility letter, stating : " Please proceed with issuing a written FHA denial or ineligibility letter reflecting that I do not meet FHA eligibility requirements due to an unresolved CAIVRS record related to the SBA loan. '' XXXX XXXX refused, responding : " I can't issue a denial letter because you can qualify for a Conventional loan. '' This is not a valid basis for withholding a required Adverse Action Notice under ECOA. XX/XX/XXXX Unauthorized Disclosure to Affiliated Builder Confirmed On XX/XX/XXXX, XXXX XXXX disclosed in writing that she had already verbally communicated my loan qualification status to XXXX at XXXX and to XXXXXXXX XXXX XXXX XXXX without my authorization. Her email stated : " I verbally indicated to XXXX @ XXXX that you qualify Conventional as well as to the XXXX XXXX XXXX XXXXXXXX. '' This unauthorized disclosure to an affiliated third party raises serious concerns under RESPA 's affiliated business arrangement provisions and applicable privacy regulations. XX/XX/XXXX Second and Third Refusals on Same Day On XX/XX/XXXX, I asked XXXX XXXX directly how I could be considered in default when my contract specifies FHA financing. She deflected, stating that was " a XXXX question '' and that she did not want to speak on behalf of XXXX 's contract. I then asked whether she had notified XXXX that there was no FHA commitment letter in place for my loan file. She responded that she had notified XXXX I was approved for a conventional loan. I explicitly requested a written letter stating I could not fulfill the FHA mortgage commitment so I could provide it to XXXX. She refused, stating " They know you can not get an FHA but that you can get a Conventional mortgage. '' I requested a letter again in the same exchange. No letter was ever provided. XX/XX/XXXX Unauthorized Disclosure Pattern Confirmed On XX/XX/XXXX, I formally stated in writing that I had never authorized a change from FHA financing and that my purchase contract specifies FHA as the required loan type. XXXX XXXX responded by admitting that as a " preferred lender '' she provides weekly updates to XXXX about my loan status. This confirms an ongoing pattern of regular unauthorized disclosure of my loan information to the affiliated builder, without my consent and without distinguishing between what she is permitted to share and what requires borrower authorization. XX/XX/XXXX Fourth Refusal On XX/XX/XXXX, XXXX XXXX again confirmed in writing that FHA financing was not possible due to both the XXXX XXXX and an FHA distance rule requiring my current home to be sold first. She again declined to issue any formal written determination and instead redirected me to a conventional loan product. I responded the same day with another formal written request for an Adverse Action Notice, asking that it be mailed to my address at XXXXXXXX XXXX XXXX XXXX XXXXXXXX, GA XXXX. No notice was ever mailed or provided. XX/XX/XXXX Final Request, No Response On XX/XX/XXXX, I sent a written request to both XXXX XXXX and XXXX sales representative XXXX XXXX asking for confirmation of when my FHA Adverse Action Notice had been mailed so I could review other financing options. I received no response from either party. Pattern of Harm Movement Mortgage 's repeated refusal to issue a required Adverse Action Notice spanning more than five months from XX/XX/XXXX through XX/XX/XXXX has directly harmed me. The builder, XXXX XXXX XXXX XXXX XXXX, is now characterizing me as a defaulting buyer, in part based on the lender 's ongoing refusal to document the FHA ineligibility in writing. Meanwhile, Movement Mortgage 's affiliated preferred lender relationship with XXXX created a conflict of interest in which my loan information was regularly disclosed to the builder without my authorization, and my requests for documentation were repeatedly denied. The lender 's conduct suggests my interests as a borrower were subordinated to the interests of the affiliated builder throughout this transaction. Requested Relief I request that the CFPB investigate Movement Mortgage for : - Failure to issue a timely written Adverse Action Notice as required by ECOA and Regulation B beginning XX/XX/XXXX - Repeated refusal to issue written FHA ineligibility documentation despite multiple formal written requests spanning five months - Unauthorized and ongoing disclosure of my loan qualification status to an affiliated builder without my consent, in potential violation of RESPA 's affiliated business arrangement provisions

Company response to consumer: Closed with explanation