BBB Business Review

BBB Accredited Business since 04/04/2011

Town Square Mortgage & Investments, Inc.

Phone: (972) 292-7606Fax: (469) 533-17442901 Dallas Pkwy STE 400, PlanoTX 75093-5984 Send email to Town Square Mortgage & Investments, Inc.View Additional Web Addresses

BBB Business Reviews may not be reproduced for sales or promotional purposes.

BBB Accreditation

A BBB Accredited Business since 04/04/2011

BBB has determined that Town Square Mortgage & Investments, Inc. meets BBB accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints. BBB Accredited Businesses pay a fee for accreditation review/monitoring and for support of BBB services to the public.

BBB accreditation does not mean that the business' products or services have been evaluated or endorsed by BBB, or that BBB has made a determination as to the business' product quality or competency in performing services.

Reason for Rating

BBB rating is based on 13 factors. Get the details about the factors considered.

Factors that raised Town Square Mortgage & Investments, Inc.'s rating include:

  • Length of time business has been operating.
  • Response to 4 complaint(s) filed against business.
  • Resolution of complaint(s) filed against business.

Customer Complaints SummaryRead complaint details

4 complaints closed with BBB in last 3 years | 1 closed in last 12 months
Complaint TypeTotal Closed Complaints
Problems with Product / Service4
Advertising / Sales Issues0
Billing / Collection Issues0
Delivery Issues0
Guarantee / Warranty Issues0
Total Closed Complaints 4

Complaint Breakdown by ResolutionAbout Complaint Details

Complaint Resolution Log (4)BBB Closure Definitions
09/05/2014Problems with Product / Service | Read Complaint Details
X

Complaint
Lender added funding conditions after settlement
Went through the whole loan process and close on the loan after being cleared to close for over week and a half. After closing they refused to fund my loan until I provides additional documentation that was not requested earlier in the process and we're not disclosed as funding conditions.

Additionally after closing my processor sent me personal documents for another borrower by mistake.

Desired Settlement
Additional conditions to be waived and that I am compensates for the time lost in which I have been unable to clean the new property after already having movers scheduled.

Business Response
The Notice of Complaint with the BBB was received on Tuesday, September 2, 2014. The individual who filed with the BBB was contacted on Friday, August 29th regarding his complaint which was also received via email. The CEO, **** ******* joined the Chief Compliance Officer, **** ***** in a joint call to Mr. ******* to fully obtain all details regarding the nature of his complaint.

During our 20 minute phone call, which began at 11:50 am, we discussed the events leading up to his frustration with his closing experience, in addition to filing his complaint filing with the BBB and CFPB. As the borrower, Mr. ******* timely provided what he was told would be sufficient documentation to support his receipt of gift funds in order to close on his home mortgage. In error, the processor told him it would suffice, but unfortunately did not reflect all information required by the investor. The oversight was not discovered until the day of closing, thus understandably, frustrating Mr. ******* during such an important transaction. Mr. ******* did intervene on the day of closing and made the decision to fund the loan with the assurance by Mr. ******* that he would work with us to obtain the further information necessary. Funding authorization occurred on the original day scheduled.

Mr. ******* communicated that because this did not occur earlier in the business day, the cleaning service he originally scheduled to come and clean the new residence did not occur. In a gesture of good faith, TSMI and Mr. ******* agreed that $250 was a sufficient amount to address his inconvenience and a credit was issued to his credit card on Tuesday, September 2, 2014. A confirmation number has been sent to Mr. *******, documenting the credit.

Town Square Financial has apologized to Mr. ******* for the experience of a late evening funding, though this is not an abnormality in the mortgage industry. His complaint was researched and a response received via phone in less than 24 hours with a satisfactory outcome agreed upon by both Mr. ******* and TSMI.

03/18/2013Problems with Product / Service | Read Complaint Details
X

Complaint
We were told we would close on our house the end of September 2012. It is Febuary 2013 and nothing has been done.We want our money back.
We have been dealing with Towns Square since April 2012 and have gone through 5 or 6 different reps and they have all quit this company. Finally in September 2012 they gave us our last closed date and wanted us to pay $200.00 to process the mortagage. It never happen. We started asking about getting our money back in January 2013 and we spoke to a ****** and a Chris who said they would return our calls. Nothing has been return our emails are not answered and they will not answer their phones. We want our $200.00 back. We don't even know if these people are even in business.

Desired Settlement
We want our $200.00 back.

Business' Initial Response
The Notice of Complaint with the BBB was received on Friday, February 22, 2013. The individual who filed with the BBB was contacted at work and a voicemail left at 10:18 a.m. to let her know we were in receipt of and were reviewing the complaint. I received a call back at 10:30 a.m. from the spouse, and we discussed the events leading up to their report to the BBB, and their request to receive a refund of $200. As it was explained by the primary borrower, their Mortgage Loan Originator (MLO) communicated they were to close on September 10, 2012 and this did not occur. After experiencing additional delays, including a change in MLO's due to their separation from the company and the borrower's being requested to further provide additional documentation, they chose to no longer move forward with the mortgage loan refinance transaction with Town Square Financial.

The mortgage loan program under which the borrower's were in the process of being qualified for is the Making Home Affordable Program (MHA), rolled out by the Obama Administration to help homeowners avoid foreclosure, stabilize the country's housing market and improve the nation's economy. The specific loan program necessary for the borrower's was the Home Affordable Refinance Program 2.0 ("HARP") loan program, designed for those who have demonstrated an acceptable payment history on their existing Fannie Mae or Freddie Mac mortgage, but may not have been able to refinance to obtain a lower payment or move to a more stable product due to not having sufficient equity in their home. This program is designed for those with little or no equity in their home - with many homeowners owing much more on their loan than their home is currently worth.

Lenders participating in this program must be approved to do so - for lenders not participating, they are eligible to outsource or "broker" the loan to a lender who is. The participating lender will underwrite, approve and close/fund the loan after full qualification of the borrower. If any conditions remain outstanding, or if an item provided to address or clear a previous condition triggers the addition of a subsequent condition, the borrower will be asked to further provide additional documents to satisfy the additional underwriting condition. The originating lender and the HARP participating lender work together with the applicant to further the loan during processing and the approval process. Unfortunately, sometimes delays do occur. Town Square Financial is not a participating lender in the HARP 2.0 program, so the loan was brokered out to 360 Mortgage Group, who chose to participate and is an approved lender for this program.

This program requires a PVR (Property Verification Report) to determine whether any insurance claims exist against the property and to estimate the value of the property. This fee may be collected in advance from the applicant - this fee for $200 was paid by the Borrower's to 360 Mortgage Group, the participating HARP lender, for this service. The Primary Borrower acknowledged this fee was paid directly to 360 Mortgage Group on August 30th - the day the loan was approved by the underwriter. Upon receipt of this fee, the participating lender could request the PVR and the fee received from the borrower would be paid to this 3rd party for providing their service - once the service is performed, an obligation to compensate the provider for their service is present. Payment of this fee is not contingent upon whether the loan progresses and is closed and funded.

It is important to note that the fee was not paid to Town Square Financial and that the fee paid was for a completed service - the participating lender and originating lender are not permitted to retain this fee for any reason. If the service had not been completed, the participating HARP lender would have refunded the fee without delay. If the loan had closed/funded, the fee would have been reflected on the closing statement as paid by the borrower and received by the 3rd party service provider.

Town Square Financial does understand the frustration the borrower's experienced with the change in staff during the processing of their loan file and that being requested to further provide additional items over an extended amount of time and after paying up-front for a 3rd party service may add to that frustration. The borrower explained that he had been clear to close in September, but that delays on behalf of Town Square Financial were the result of the loan not closing at that time. The HARP participating lender, 360 Mortgage Group confirmed that the borrower's loan was never cleared for closing and that outstanding conditions remained until the loan was later cancelled.

Town Square Financial reached out to 360 Mortgage Group and explained that the borrower's had filed a complaint against Town Square Financial as the originating lender with the Better Business Bureau, seeking the return of the $200 fee incurred for the PVR, though the fee was never paid to or received by Town Square Financial. 360 Mortgage Group did not feel that a refund was warranted, as the service for the PVR was performed and the 3rd party service provider compensated, regardless of whether the end result was a closed loan. Our discussion with 360 Mortgage Group encompassed trying to determine why there was an extended delay from the time the PVR fee was received by 360 Mortgage Group in August and conditions continued to remain outstanding through December. Though the borrower indicated he was clear to close in September, he also shared that he provided documentation for one of the outstanding conditions regarding child support in December - the underwriter noted on the approval issued on August 30th that the credit report indicated that the child support was past due and must be paid in full. The approval issued also indicates that many of the documents provided were expired or were going to expire in December. Both Fannie Mae and Freddie Mac require that all credit reports and any document provided to support employment, income or assets not be more than 90 days old based upon the date when the Note is signed at closing. Delays may have been experienced and/or the borrower's may have been requested to provide updated documents for income and assets, while the originating lender obtained updated employment or credit report documents.

360 Mortgage Group was very helpful to Town Square Financial in reviewing the original approval and outstanding conditions, though with the original MLO and loan processor no longer on staff with Town Square Financial, it was challenging to obtain a completely accurate account of what transpired over the course of the loan period. As a gesture of good will to the borrower's and Town Square Financial, 360 Mortgage Group indicated they would refund the $200 to the borrower's via check. The borrower confirmed the mailing address of record on Friday, March 1st and the reimbursement check due to be mailed on Monday, March 4th.

A follow-up inquiry via email to the borrower on Thursday, March 7th received a confirmation that she did receive the $200 reimbursement check on Wednesday, March 6th from 360 Mortgage Group.

Town Square Financial has apologized to the borrower for not timelier responding to her initial inquiries in January, which resulted in the escalation request for reimbursement as a complaint to the Better Business Bureau. Town Square also appreciates 360 Mortgage Group, for their willingness to reimburse the borrower for the service fee collected, and their incurring the expense for the completed service.

12/13/2012Problems with Product / Service
08/07/2012Problems with Product / Service

Industry Comparison| Chart

Mortgage Lender, Escrow Service, Mortgage Bankers, Mortgage Brokers

Additional Information

top
BBB file opened: 06/02/2009Business started: 01/01/1997New Owner Date: 04/01/2009
Licensing, Bonding or Registration

This company is in an industry that may require licensing, bonding or registration in order to lawfully do business. BBB encourages you to check with the appropriate agency to be certain any requirements are currently being met.

These agencies may include:

Texas Department of Savings and Mortgage Lending
2601 North Lamar, Suite 201
Austin, TX78705
(877) 276-5550
http://www.sml.texas.gov/

Type of Entity

Corporation

Incorporated: January 2009, GA

Contact Information
Principal: Mr. Adam Welwood (President/CEO)Customer Contact: Lynn Baugh (CCO)
Business Category

Mortgage Lender, Escrow Service, Mortgage Bankers, Mortgage Brokers

Service Area

Dallas/Northeast Texas

Alternate Business Names
Lone Star Home Loans, Town Square Financial
Industry Tips
Mortgage Broker

Map & Directions

Map & Directions

Address for Town Square Mortgage & Investments, Inc.

2901 Dallas Pkwy STE 400

Plano, TX 75093-5984

To | From

LocationsX

1 Locations

  • 2901 Dallas Pkwy STE 400 

    Plano, TX 75093-5984(972) 292-7606

Industry Comparison ChartX

The information in the table below represents an industry comparison of businesses which are of the same relative size. This is based on BBB's database of businesses located in Dallas and Northeast Texas. Businesses may engage in more than one type of business. The percent of time the business engages in a type of business is not accounted for. There is no known industry standard for the number of complaints a business can expect. The volume of business and number of transactions may have a bearing on the number of complaints received by BBB.

*Town Square Mortgage & Investments, Inc. is in this range.

X

Types of Complaints Handled by BBB

BBB handles the following types of complaints between businesses and their customers so long as they are not, or have not been, litigated:

  • Advertising or Sales
  • Billing or Collection
  • Problems with Products or Services
  • Delivery
  • Guarantee or Warranty

We do not handle workplace disputes, discrimination claims or claims about the quality of health or legal services.

X

Additional Web Addresses

X

Additional Email Addresses

X

BBB Complaint Process

Your complaint will be forwarded to the company within two business days. The company will be asked to respond within 14 days, and if a response is not received, a second request will be made. You will be notified of the company's response when we receive it (or notified that we received no response). Complaints are usually closed within 30 business days.

X

BBB began including the text of consumer complaints and business responses in BBB Business Reviews on 07/01/2013 for complaints filed on 01/01/2013 and thereafter. This includes all complaints that meet our reporting guidelines and that are filed electronically. We also report on the resolution of the complaint, as determined by BBB.

X

Industry Tips for Mortgage Lender

Mortgage Broker
X

What is BBB Advertising Review?

BBB promotes truth in advertising by contacting advertisers whose claims conflict with the BBB Code of Advertising. These claims come to our attention from our internal review of advertising, consumer complaints and competitor challenges. BBB asks advertisers to prove their claims, change ads to make offers more clear to consumers, and remove misleading or deceptive statements.

X

What government actions does BBB report on?

BBB reports on known significant government actions involving business' marketplace conduct.

X

About BBB Business Review Content and Services

Some Better Business Bureaus offer additional content and services in BBB Business Reviews. The additional content and services are typically regional in nature or, in some cases, a new product or service that is being tested prior to a more general release. Not all enhanced content and services are available at all Better Business Bureaus.

X

Thank you for your feedback.

Help us improve by taking our survey.

X

BBB Customer Review Rating plus BBB Rating Overview


BBB Customer Reviews Rating represents the customers opinions of the business. The Customer Review Rating is based on the number of positive, neutral and negative customer reviews posted that are calculated to produce a score.

Customer Review Experience Value
Positive Review 5 points per review
Neutral Review 3 points per review
Negative Review 1 point per review

BBB letter grades represent the BBB's opinion of the business. The BBB grade is based on BBB file information about the business. In some cases, a business' grade may be lowered if the BBB does not have sufficient information about the business despite BBB requests for that information from the business.
Details

BBB Letter Grade Scale

BBB Rating Value
A+ 5
A 4.66
A- 4.33
B+ 4
B 3.66
B- 3.33
C+ 3
C 2.66
C- 2.33
D+ 2
D 1.66
D- 1.33
F 1
NR -----
Star Rating scale

  Average Score
5 stars 5.00
4.5 stars 4.50-4.99
4 stars 4.00-4.49
3.5 stars 3.50-3.99
3 stars 3.00-3.49
2.5 stars 2.50-2.99
2 stars 2.00-2.49
1.5 stars 1.50-1.99
1 star 0-1.49

BBB Customer Review Rating plus BBB Rating is not a guarantee of a business' reliability or performance, and BBB recommends that consumers consider a business' BBB Rating and Customer Review Rating in addition to all other available information about the business. If the BBB Rating is NR then only Customer Reviews are used for the Star Rating.

As a matter of policy, BBB does not endorse any product, service or business.

BBB Business Reviews are provided solely to assist you in exercising your own best judgment. Information in this BBB Business Review is believed reliable but not guaranteed as to accuracy.

BBB Business Reviews generally cover a three-year reporting period. BBB Business Reviews are subject to change at any time.

X

What is a BBB Business Review?

We offer free reviews on businesses that include background, licensing, consumer experience and other information such as governmental actions that is known to BBB. These reviews are provided for businesses that are BBB accredited and also for businesses that are not BBB accredited.

X

BBB Reporting Policy

As a matter of policy, BBB does not endorse any product, service or business.

BBB Business Reviews are provided solely to assist you in exercising your own best judgment. Information in this BBB Business Review is believed reliable but not guaranteed as to accuracy.

BBB Business Reviews generally cover a three-year reporting period. BBB Business Reviews are subject to change at any time.