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American Financial Resources, Inc.

Additional Locations

Phone: (800) 634-8616 Fax: (916) 239-4535 1722 J St Ste 14, Sacramento, CA 95811 http://www.afrmortgage.com View Additional Web Addresses

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BBB Accreditation

This business is not BBB accredited.

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Reason for Rating

BBB rating is based on 16 factors. Get the details about the factors considered.

Factors that raised the rating for American Financial Resources, Inc. include:

  • Length of time business has been operating.
  • Complaint volume filed with BBB for business of this size.
  • Response to 4 complaint(s) filed against business.
  • Resolution of complaint(s) filed against business.
  • BBB has sufficient background information on this business.


Customer Complaints Summary Read complaint details

4 complaints closed with BBB in last 3 years | 0 closed in last 12 months
Complaint Type Total Closed Complaints
Advertising/Sales Issues 0
Billing/Collection Issues 1
Delivery Issues 1
Guarantee/Warranty Issues 0
Problems with Product/Service 2
Total Closed Complaints 4

Customer Reviews Summary Read customer reviews

0 Customer Reviews on American Financial Resources, Inc.
Customer Experience Total Customer Reviews
Positive Experience 0
Neutral Experience 0
Negative Experience 0
Total Customer Reviews 0

Additional Information

top
BBB file opened: February 23, 2010 Business started: 12/01/1997 Business started locally: 12/01/1997 Business incorporated: 12/01/1997 in NJ
Licensing, Bonding or Registration

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

These agencies may include:

Department of Business Oversight
1515 K St. Suite 200, Sacramento CA 95814
www.corp.ca.gov
Phone Number: (866) 275-2677
The number is 4130714.

Type of Entity

Corporation

Business Management
Mr. Richard Dubnoff, CEO Ms. Hanni Caitham, Branch Manager Mr. Kyle Palmer, Compliance Offer
Contact Information
Principal: Mr. Richard Dubnoff, CEO
Business Category

Mortgage Brokers

Alternate Business Names
AFR Mortgage AFR Mortgage, Inc. Homecity Mortage
Products & Services

This company is a national home mortgage lender.


Additional Locations

  • THIS LOCATION IS NOT BBB ACCREDITED

    1722 J St Ste 14

    Sacramento, CA 95811

  • THIS LOCATION IS NOT BBB ACCREDITED

    2150 Douglas Blvd Ste 110

    Roseville, CA 95661 (888) 299-8929 (877) 336-3313 (800) 634-8616 (877) 693-7823

  • THIS LOCATION IS NOT BBB ACCREDITED

    9 Sylvan Way Ste 310

    Parsippany, NJ 07054 (888) 299-8878

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Professional AffiliationsX
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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

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BBB Complaint Process

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Additional Web Addresses

  • http://www.facebook.com/AFRMortgage
  • https://plus.google.com/+Afrmortgage/posts
  • https://twitter.com/AFRMortgage
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Complaint Detail(s)

9/16/2013 Delivery Issues | Read Complaint Details
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Additional Notes

Complaint: American Financial Resource locked me in to a 10 year 2.75% mortgage on $250,000 but then refused to close as the rates increased. On or about May 31, 2013 my wife ***** and I began the process of applying for a mortgage with American Financial Resources (AFR), 9 ****** Way, *********** ** XXXXX; loan number XXXXXXX. We locked in a 10 year fixed rate of 2.75% on a $250,000. After weeks of transferring information back and forth with AFR we were told by ***** ****** that we were approved for the loan. It should be noted that my wife and I both had 800+ credit scores, over $1.5m in liquid investments and would net over $500,000 in cash from the sale of our existing house. The closing was set for August 19 at 11 am. It was always set on that date. On the morning of Friday, August 19 I received a call from Mr. ****** informing me that AFR could not verify my wife's employment and that her employer ******* ****** ******** was closed on Fridays in the summer and therefore we would be unable to close. I reminded Mr. ****** that my income ($230,000+) alone was sufficient to qualify for the loan. I also informed Mr. ****** that we would be closing on August 19. Mr. ****** said he would see if AFR would agree to this and would call me within 15 minutes. Never heard from Mr. ****** again. A week later, on August 26 we received an email from AFR notifying us that our loan was approved. During the week between August 19 and August 26 we had no communications with AFR and sent them no further documentation. When I spoke with AFR I informed them that we had in fact closed on August 19 as scheduled with an all cash transaction but we would do a re-fi at the locked in rate. AFR said they would get back with me. Since then there has been no communication from AFR.

Desired Settlement: Since the current rate for a 10 year fixed rate is now about 1% higher than the rate I secured with AFR, it will cost me $2500 more in year one to finance the mortgage. A check for $25,000 from AFR and a letter of apology will suffice.

Business Response: Business' Initial Response
Dear Mr. ******* *******, American Financial Resources, Inc. is in receipt of your inquiry. As evidenced by our A+ rating with the Better Business Bureau, we take all consumer complaints very seriously. Our company is a licensed lender with Direct Endorsement authority from the Department of Housing and Urban Development ("HUD"), and an approved seller/servicer with Fannie Mae/Freddie Mac. Fannie Mae underwriting guidelines mandate that lenders must obtain a verbal verification of employment (VOE). Every borrower on the loan, regardless of how much they may individually contribute financially, is required to have their employment verified. The verbal VOE is intended to help lenders mitigate risk by confirming, as late in the process as possible, that the borrower remains employed as originally disclosed on the loan application. Irrespective of the personal income and asset levels, our company requires employment verification within three days of the closing. While we always appreciate the urgency and preferred timeframe of our applicants to close, we cannot compromise the integrity of the risk management protocols of prudent underwriting. Please be advised that our company neither charges application fees, underwriting fees, nor any lender fees whatsoever. Our company does not generate any revenue unless a loan actually closes; all of our loans are sold into the secondary market, and we do not receive any additional compensation for delivering higher interest rate loans. We are incentivized to close all loans as quickly and efficiently as possible. As an Equal Housing Lender, we strive to provide financing to all qualified candidates on all eligible properties. Over the past fifteen years, we have helped tens of thousands of families achieve homeownership, and work tirelessly to handle all transactions in a professional manner. Thank you in advance for your consideration.

Consumer's Final Response
(The consumer indicated he/she DID NOT accept the response from the business.) I think it is a shame that the AFR is allowed to get away with denying me a 2.75% loan based solely on their incompetency while inviting me to apply for a 3.75% loan. Shame on you.

Business' Final Response
American Financial Resources, Inc. is in receipt of your inquiry. As evidenced by our A+ rating with the Better Business Bureau, we take all consumer complaints very seriously. Our company is a licensed lender with Direct Endorsement authority from the Department of Housing and Urban Development ("HUD"), and an approved seller/servicer with Fannie Mae/Freddie Mac. We never received a copy of the rebuttal request until today, September 11th. We maintain one of the highest customer satisfaction ratings in the industry because of our timely responses to consumer inquiries. Our company is a highly regulated institution that adheres to the underwriting requirement of the government sponsored entities (GSEs) such as Fannie Mae. As we mentioned beforehand, their underwriting guidelines mandate that lenders must obtain a verbal verification of employment (VOE). Every borrower on the loan, regardless of how much they may individually contribute financially, is required to have their employment verified. The verbal VOE is intended to help lenders mitigate risk by confirming, as late in the process as possible, that the borrower remains employed as originally disclosed on the loan application. Irrespective of the impressive personal income and asset levels, our company requires employment verification within three days of the closing. While we always appreciate the urgency and preferred timeframe of our applicants to close, we cannot compromise the integrity of the risk management protocols of prudent underwriting. Please be advised that our company neither charges application fees, underwriting fees, nor any lender fees whatsoever. Our company does not generate any revenue unless a loan actually closes; all of our loans are sold into the secondary market, and we do not receive any additional compensation for delivering higher interest rate loans. Your previous transaction was cancelled, and we cannot offer you a rate that does not exist in the current marketplace. We recognize you decided to pay for the residence in cash, but you are always free to reapply for a mortgage loan. As an Equal Housing Lender, we strive to provide financing to all qualified candidates on all eligible properties. Over the past fifteen years, we have helped tens of thousands of families achieve homeownership, and work tirelessly to handle all transactions in a professional manner. Thank you in advance for your consideration.

1/21/2013 Problems with Product/Service | Read Complaint Details
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Additional Notes

Complaint: Too lenghty Process 4 1/2 months. Very poor / no communication with the client on progress & timeline & incomplete processing of document destruction. American Financial Resources, Inc. (AFR) Loan Application Number XXXXXXX. Initial contact July 30, last contact December 18th 2012. Assigned Loan Agent *** *******. All of my paperwork submitted within 24 to 72 hours of any request. I made numerous requests (documentation available)for timeline and progress updates without any response. Only contact From AFR was for more information which was submitted within 24 hours. finally on 11/1/2012 I requested cancellation of my loan application and confirmation of my financial documentation destruction. Around 11/5/2012 *** *******, and ***** *****, his supervisor, called and talked me into continuing the application. A closing date was set for 11/13/2012. It can and went without answering any of my requests for progress and information concerning the needed check amount at closing. No answers or communication provided until I finally emailed asking if AFR are going to process the loan. November 26, 2012 I received a denial of loan due to my current loan was a Fixed HELOC loan. At this point I did not care that the loan was complete or denied, considering their poor service performance I was now concerned how they would service the loan if approved. I did not not contest the decision. I asked for a copy of the denial notice and confirmation of destruction of my financial information. November 27, 2012 they indicated that a denial letter would be sent and in the denial letter there would be a document destruction statement. On December 13, 2012 I wrote that I had not yet received a denial letter nor the confirmation of destruction of my financial information. On 12/18/12 I was emailed the denial letter but there was no statement of Documentation destruction. I emailed *** ******* of the omission but have not received any reply nor statement of destruction to this date of 12/24/2012. In my opinion AFR exhibited poor client relations and even worst poor communications and inadequate closure of the process by not providing certifcation statement that my Financial information has been destroyed. AFR actions has placed a black mark on the internet mortgage or finacial industry because of their poor professionalism.

Desired Settlement: Just want a certified Statement from AFR that my financial information was destroyed. The rest is between AFR and any future customers they might ensnare.

Business Response: Business' Initial Response
American Financial Resources, Inc. ("AFR") is in receipt of your consumer complaint. Our company is a nationwide mortgage lender with Direct Endorsement (DE) authority from the Department of Housing and Urban Development. We are also an approved seller/servicer with Fannie Mae and Freddie Mac. As evidenced by our strong customer satisfaction ratings, we take all consumer inquiries very seriously. By state and federal law, we are obligated to maintain your application information in our corporate records. We are subject to regulatory oversight and examination by multiple agencies. Please rest assured, however, that AFR maintains physical, electronic, and procedural safeguards that comply with federal standards to guard non-public personal information. We utilize McAfee encryption software; NAID certified shredding services, conduct background searches on employees, and limit employee access to customer information. The company employs a Certified Information Privacy Professional (CIPP), utilizes a high level third-party Information Technology auditing firm, and takes a myriad of other information security measures. While we cannot furnish you with a specific destruction certificate, we trust our aforementioned protective measures will equip you with confidence that your information will be safeguarded appropriately. Additionally, all of our loan originators and employees complete Privacy Training courses. We apologize if there was any perceived lack of communication; we pride ourselves on always delivering a high level of customer service. As an Equal Housing Lender, we strive to provide financing to all qualified applicants on all eligible properties. Please be advised that our company neither charges application fees, underwriting fees, nor any lender fees whatsoever. Our company does not generate any revenue until a loan actually closes. Over the past fifteen years, we have helped tens of thousands of families achieve homeownership, and work tirelessly to handle all transactions in a professional manner. Should you require additional information, we would be pleased to respond. Thank you in advance for your consideration. Sincerely, ****** ******, CEO American Financial Resources, Inc.

10/8/2012 Problems with Product/Service | Read Complaint Details
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Additional Notes

Complaint: American Financial Resources is refusing to issue a refund of an appraisal fee. I was seeking a mortgage refinance from American Financial Resources. As part of the loan process an appraisal was ordered. I paid the amount of $400.00 required for the appraisal. I paid this amount through American Financial Resources to their appraisal firm ******* Appraisal. The appraisal was performed on August 28th. I telephoned my agent ***** ***** on Spetember 5th to inquire about the appraisal and the status of my loan. During this call she told me that my loan was approved. On Friday September 7th Ms. ***** telephoned me to inform me that my loan was not able to be completed because the appraised value of the property was too low. At this time I asked Ms. ***** if the amount I paid for the appraisal could be refunded since the loan could not be processed even though she stated that it could. Ms. ***** stated that she would try to see what she could do for me. I received and e-mail from Ms. ***** on September 10th stating the amount could not be paid since the service had been performed. I cannot find any documentation stating that the appraisal fee was non-refundable.

Desired Settlement: I would like to receive a full refund of $400.00 which I paid through American Financial Resources for an appraisal fee.

Business Response: Business' Initial Response
Dear Ms. ******, Our company is a nationwide mortgage lender, Fannie Mae approved seller/servicer, and approved Ginnie Mae issuer. As a direct endorsement lender offering government insured loans, we must abide by all regulations pertaining to Appraiser Independence Requirements. To comply with these laws, our company utilizes Coester Valuation Management Services, an independent third-party appraisal management company. While we cannot speak directly for a third party, Coester invoices are generally reasonable and customary for 2012 valuation services. Our own entity neither charges nor receives any advance fees. The application for a loan occurred on August 22nd, and the clients loan received a conditional approval by our underwriter on September 5th. One of these conditions of approval was a satisfactory appraisal. The appraisal was then received on September 7th, and the valuation was too low to support a refinance. The value of $108,000 did not support the borrower's desired loan amount of $118,400. The appraisal report was completed in compliance with Fannie Mae requirements. Any monies expended by the consumer were received by the third party company. Unfortunately, in some instances, consumers are oftentimes disappointed in the current valuation of their residence. While we empathize with borrowers in a declining market, an appraisal that falls below borrower expectations is not grounds for reimbursement. Please note our company does not earn any fees unless a transaction closes. As an Equal Housing Lender, we strive to provide financing to all candidates on qualified properties. We have helped tens of thousands of families achieve homeownership, and we currently maintain an A+ rating with the Better Business Bureau. We trust you will find our written response satisfactory. Thank you.

Consumer's Final Response
(The consumer indicated he/she DID NOT accept the response from the business.) I understand that no monies are made by AFR for the appraisal. However, I feel I was mislead by the loan department. It was not explained to me in the phone call with Ms. ****** that my appraisal was not complete. Ms. ****** stated to me that my loan was approved, period. She did not make it clear to me that the appraisal had not been sent back to them. Also, I have not received any written documentation stating that the appraisal fee was not refundable.

9/17/2012 Billing/Collection Issues | Read Complaint Details
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Additional Notes

Complaint: AFR has failed to credit my account with a "principal reduction" of $1513.20 I was due out of closing on a re-finance. On June 13, 2012, I closed the re-finance of my condo at *** **** ****** Way (AFR/local agent file #XXXXXXXXX). Line #105 on the Settlement Statement/HUD-1 lists a "principal reduction" of $1,513.20. On the HUD-1 Attachment, this principal reduction is listed as paid to "People's Home Equity, Inc.", which is my Lender/AFR. I have spoken with the Title Agency used at closing on this re-finance and the Title Agent confirmed the $1513.20 was not received by the Title Company and should have been credited against my initial principal balance with AFR. The loan was for $112,000 and I have never received confirmation the $1513.20 was credited to the principal balance. I initially setup an account online at https://www.afr.servicemyloan.com/ I am no longer able to login to check my account balance. My local agent *** ****** has been very helpful in forwarding my e-mail concerns to AFR Mortgage contacts *** ******* and ******** *********. I have e-mailed *** ******* and ******** ********* on both July 20, 2012 and July 27, 2012, but have not received a response from either individual. Tonight (July 30, 2012) I attempted to chat online with customer service agent Kameron Senemar NMLS XXXXXX about BOTH the failure to give me the $1513.20 credit AND the inability to access my account online at https://www.afr.servicemyloan.com/. After 20 minutes of sitting without a response, I ended the chat and reached out to the better business bureau. My request is simple, I'd like AFR to credit my account with the $1513.20 and to provide confirmation they've done so and to allow me to access my account online at no cost as advertised.

Desired Settlement: 1. $1513.20 credit for "principal reduction" effective as of the date of closing, June 13, 2012. 2. Receipt for this credit e-mailed to me at *****@hotmail.com 3. Online account access to be provided.

Business Response: Business' Initial Response
Contact Name and Title: ****** ****** Contact Phone: XXX-XXX-XXXX Contact Email: *****@afrmortgage.com Dear ****** ******, American Financial Resources, Inc. is in receipt of your consumer complaint. As evidenced by our A+ rating with the BBB, we take all consumer inquiries very seriously. Our company is a licensed nationwide mortgage lender with Direct Endorsement (DE) Authority from the Department of Housing and Urban Development (HUD). Upon receipt, we have performed our due diligence on this item. We believe your transaction closed on June 13th, and a member of our accounting department received your email notification on July 13th. Check # XXXXX was then issued to Provident in the amount of $1,513.20 on July 25th. As of August 1st, the amount was posted on the Provident website as a principal reduction. We believe the online access portal to our sub-servicer remains in working order. Should you require anything else, we would be pleased to respond. Sincerely, ****** ******, CEO