| Issue |
Credit decision / Underwriting
|
| Timely |
Yes
|
| Company |
Frontline Financial, LLC
|
| Product |
Mortgage
|
| Sub Product |
FHA mortgage
|
| Date Received |
2017-03-22
|
| Submitted Via |
Web
|
| Company Response |
Closed with explanation
|
| Consumer Disputed |
No
|
| Date Sent To Company |
2017-06-30
|
| Complaint What Happened |
In XXXX XXXX , Frontline Financial , LLC pre-qualified me for an FHA loan. I had previously spoken to another mortgage broker who told me I would be unable to use rental income from my current condominium, but XXXX XXXX assured me that they would be able to include this. I asked him to check on this, and was under the impression that this had been done. When I found a house in XXXX XXXX , Frontline Financial , LLC provided a pre-approval letter to accompany my offer. My offer was accepted, and a closing date was set for XXXX / XXXX / XXXX . During the period from XXXX through XXXX / XXXX / XXXX , I continued the buying process, obtaining the appraisal and an inspection, as well as an insurance quote and home warranty, all while receiving updated loan documents from Frontline Financial , LLC with every new piece of verified information, and the assurance that all was fine, and we should be able to close by the scheduled date. My deadline for withdrawing from the contract was XXXX days prior to closing, as clearly stated in my contract, which Frontline Financial , LLC had been provided a copy of when the offer was accepted. However, it was not until the day of closing - XXXX that Frontline Financial , LLC verified whether or not I actually met all requirements the FHA loan. At this time, they found that in order to use the rental income from the home one is moving out of, one must move at least XXXX miles. The new property is only XXXX miles from my current home. With this information, they denied my application for a loan. Clearly as a lender, they should know all requirements for the loans they propose to clients, and not wait until last minute to check if there are any changes. Their error in this instance caused me not only to lose the property, but also portions of my deposit, in addition to spending unnecessary monies on an inspection and appraisal of a property I could not afford without an FHA loan. I notified Frontline Financial , LLC of my loss of portions of the deposit due to their error, and have requested reimbursement of the funds lost ; however, they have chosen to not take any responsibility, and is now stating their decision was based on my credit, which they clearly should have been aware of before presenting me with a loan offer and a pre-approval letter. I find this to be such gross negligence on their part, and want to ensure they do not repeat this process with other potential buyers.
|
| Consumer Consent Provided |
Consent provided
|
|
