Our engagement with Wyndham Capital Mortgage resulted in late payments with out current lender and a loss of two months overall.We never closed.
I first contacted Wyndham Nov. 2014 via ******'s Mortgage program. I initially spoke to ********* and determined that I would wait until 2015, because I was unable to provide all necessary tax documents for prior years. I filed my 2015 tax returns early (Feb 2015) and reached back out to *** and we started the process. I provided all documents that were requested including tax returns for two years within 3 business days. After 8 weeks of reacting to constant requests for documentation, the underwriters communicated that we would have approval and ready to close by 4/15/15. I received an email from the loan processor the week of 4/13/15 requesting more signed documents as well as, 2015 tax transcripts. I was stunned. I was not aware that transcripts were required to close this loan and Wyndham did not mention this in 2014 or when I started the process. After taking time off from work and running back and forth to the IRS, I determined that the tax transcripts for 2015 would not be available for months (because we owed) and hence they were still being processed. I was then asked for a prior year return - which as I mentioned at the onset we did not have. At the same time, my mortgage payment was due and was never deducted by my lender. As it turns out because Wyndham requested the payoff amount our automatic debit was cancelled. When I asked ********* if Wyndham could notify the bank that we were not going to close, I was told that it was not there responsibility. So the loan never closed, I incurred late fees on my mortgage for the first time ever (17 years). All Wyndham Capital left me with was frustration! We paid $500 for an appraisal that my current lender will not use and they have marred my perfect record because of inaccurate information.
I have spent $500 on an appraisal that is useless and $159.00 due to inaccurate information about our ability to close in April which resulted in late payments to my mortgage company
The borrower initially applied with Wyndham Capital Mortgage on October 27, 2014. In order to document two full years of employment, her tax returns were required. She stated she was unable to locate them and withdrew the file on 11/3/2014 indicating she would reapply once she found them. She reapplied to Wyndham on February 18, 2015.
The borrower's employment history contains both contract and self- employment work for the previous two years. This necessitates additional documentation to meet FNMA guidelines and for the loan to be eligible for sale in the secondary market. One of the requirements is to verify/validate via a third party, the income documentation for a two year period. This is done by requesting tax transcripts from the IRS to confirm the tax filings. Wyndham made this request (for tax years 2011, 2012, 2013) to the IRS on 3/17/2015. Tax year 2014 was not requested as it was prior to the April 15, 2015 filing deadline... Wyndham received a response from the IRS on 3/21/2015 indicating that there was no record of filing for 2012. This created a gap and Wyndham was unable to meet the documentation requirement. As the borrower had indicated she had already filed 2014 returns, Wyndham made a request on 4/8/2015 for a copy of the 2014 tax transcripts. The response from the IRS was there was no record of the return being filed. Without two consecutive years of income being documented, Wyndham was unable to move forward with a final approval on the loan.
The borrower also indicated that her ACH for her mortgage payment was stopped when Wyndham requested the payoff letter. We spoke to her current mortgage servicer who advised that when a customer has an ACH for their payment and a payoff letter is requested, their customer service department mails a copy of the letter to the borrower as well as calls to advise them that the ACH is stopped. The reactivating of the ACH would have been out of Wyndham's control.
WCM always takes these reviews very serious and if there is any way that our actions resulted in customer losing money we always make it right with the customer. However, in this case WCM did nothing wrong. WCM actually followed the normal procedures to verify what we have been told per the application. Unfortunately in this case the information surrounding the income which is needed to achieve "approval" could not be verified. In today's world income verification is required. For this reason we see no obligation to refund any monies.
Why has this complaint been closed? I requested a refund of $425.00 of appraisals fees but received no response.
Additionally, I went to the IRS directly, IN Person on 4/14/15. The IRS confirmed that my returns are in progress. The information from Wyndham is UNTRUE. Also I was told that we were CLOSING on 4/15/15, later I was told that transcripts were needed Wyndam should have advised me that transcripts were needed prior to communicating a close date!
Final Business Response
As previously indicated, Wyndham followed Federal requirements and industry guidelines in the handling of Ms. xxxxx' loan file. In order to meet the requirements of the Dodd-Frank Ability To Repay/Qualified Mortgage Act, Wyndham had to document and verify the borrower's income for two consecutive years. As the loan was in process before the April 15, 2015 filing date for 2014 returns, there was no requirement for the 2014 tax transcripts. When validating her income for tax years 2012/2013 to meet the two year requirement, it was discovered that Ms. xxxxx did not file tax returns for the tax year 2012. This precipitated the necessity to validate 2014 income and returns. Ms. xxxxx indicated that she had filed (in February) her tax returns for tax year 2014. When Wyndham requested validation from the IRS, the IRS indicated no record of tax return for year 2014. Without this validation, Wyndham could not meet the Federal requirement and was unable to move forward with the approval of the loan file.
With regard to the borrower's late payments on her mortgage loan, Wyndham did order a payoff letter from her current servicer. We also contacted the servicer who advised when borrowers have an ACH for their mortgage payment, their customer service department provides a copy of the payoff letter to the borrower (which states the ACH will be terminated) as well as calls the borrower to advise the ACH will be terminated. The borrower is the only person authorized to re-activate the ACH for the mortgage withdrawals.
Ms. xxxxx did pay $425 for an appraisal of her home. Wyndham provided Ms. xxxxx with the New Jersey Application Disclosure, which she signed, indicating the appraisal fee would be refunded if the appraisal had not been ordered. In this case, the appraisal was ordered and completed. Industry guidelines do prohibit the borrower from providing an appraisal directly to a lender. Wyndham is willing to request the Appraisal Management Company to release the appraisal directly to her new lender for their review. We would need to be provided with the name of the lender and contact information to coordinate this transfer. However, as previously stated Wyndham believes that we followed all regulatory requirements and are not obligated to refund any monies to the borrower.