ComplaintsforWillow Bend Mortgage

• Initial Complaint

  01/10/2023

  Complaint Type:

  Product Issues

  Status:

  Answered

  More info

  I decided to go with Willowbend Mortgage. I filled out the application, sent check stubs, w-2's, and banking account information. I received a pre-approval letter on August 17, 2022, for 325K. I began the process with my realtor and started looking at homes. Once we found a house, we submitted the offer, and it was accepted. On September 24 I paid $3800 to the title company. After not hearing any updates, my realtor reached out to Willowbend via email requesting an update and mentioned October first is the last day to back out of the financing. No one from Willowbend backed out of the financing. I was then told that in order maintain the interest rate Willowbend needed to broker the loan. Closing date was set for October 20, 2022. On October 13, 2022, I received a call from Willowbend telling me I need to have the disputes on my credit report removed to get approved for an FHA loan. I asked was this a time sensitive thing I needed to do because we are supposed to close next week, and no one mentioned this to me before. They said no. Prior to the set closing date, I paid $400 for the house inspection. I was also suggested to have the house appraised (cost $800) to assist with closing cost. I received 3 different documents on three different dates for three different closing total closing cost: $19k, 24K, and 29K. After extending the closing an additional week, I received a call from Willowbend on November 1, 2022, saying the underwriting system did not accept the loan due to my debt-to-income ratio. I received a call from Willowbend on December 1, stating there is nothing we can do and/or refund your *******, inspection, and appraisal money. -upon receiving the offer letter in August with my credit needed work and debt-to-income ratio was above the requirements to approve a loan they proceeded -if my credit was issue, we should have not proceeded with any process with my ****** money, inspection, and appraisal, putting my money in jeopardy. I have text and email.

  Business response

  01/17/2023

  Good morning,
  
  Thank you for alerting me to the customers complaint filing. Willow Bend Mortgage also received a complaint from the ********** of ******* and Lending filed by the same consumer. I have attached my response for your review.
  
  The ********** of ******* and Lending closed the complaint with no action taken.
  
  Let me know if you have any follow up questions.
  See Attachment/File: RE SML File No. ****** - Response Request.msg

  Customer response

  01/24/2023

  (The consumer indicated he/she DID NOT accept the response from the business.)
  Attached screenshots of emails. Willowbend poorly handled this process. My realtor emailed and called ******************* and his team and asked the status of the loan and that 10/1/2022 was the last to day to finance the loan under the Consumer Protection Notice (Form ID: CN 1-4). **************** said we're good we are working out the loan. After receiving a closing date *********************** reached out to me and said I need to reach out to all 3 credit bureaus and ask them to remove the disputes on 3 specific accounts. I responded, isn't this time sensitive I'm supposed to close next week. He said it doesn't take long and gave me the numbers to the bureaus and instructed me what to say. I was told this by someone named ***. I was confused because if the disputes were an issue, why are you telling me now and not after running credit 6 times. Along this 3-month process, the consensus from ***, ******, ****, ******, ***, and ****** were "we're working on the loan." The opportunity to retrieve my ****************** ($3800) was lost based off the response from the Willowbend team saying was good. They did not say the loan couldn't be done until 10/31/2022. They said the if the house appraises for more, I could use it as a seller's credit. I paid $800 to get the house appraised. I got new insurance for the house ($219), an inspection for the house ($400). I have text messages, voicemails, and contracts from *** and his team of these steps on the processes on the loan and the closing cost going from 18k, 24k, and 29k even after the seller's credit. Three 3 months, no house, $5k lost in savings. All I received from Willowbend was "sorry" and false hope from the beginning 8/24 to the end 10/31.
  See Attachment/File: Email1

  Business response

  02/03/2023

  I have responded to the Borrower's continued complaint with timeline/events as tracked by Willow Bend Mortgage.
  
  Summary of Timeline/Events
  Source data: Interviews with Loan Officer and Processor on 12-21-2022; email records supplied by ***************** and time stamped in file.
  Borrower applied for a mortgage loan--file start date was 08/10/22. Based on the information reviewed by the Loan Officer, a conditional preapproval was issued on 08/15/2022 with an expiration date of 09/15/2022.
  Borrower entered in Purchase Contract on 09/21/2022 which was 6 days after the conditional approval expired. Willow Bend Mortgage did not find any evidence in its records that Borrower or ********'s Realtor requested an updated pre-approval letter prior to making the offer.
  The Purchase Contract had a 10-day third-party financing contingency which expired on 10/01/2022.
  Since interest rates had increased from the issue date of the conditional pre-approval letter resulting in points and fees being too high for Willow Bend Mortgage to proceed as the lender, Willow Bend Mortgage initiated the process to broker the loan to Freedom Mortgage
  Initial Disclosures were sent from Freedom Mortgage to the borrower on 9/22/2022.
  Freedom Mortgage emailed Willow Bend Mortgage on 10/06/2022 with questions regarding borrower's credit and income/debt ratios.
  On 10/7/2022, Willow Bend Mortgage received conditions from Freedom Mortgage including a the requirement of a new credit report and suspended the loan.
  On 10/11/2022, Loan Officer ********* confirmed to Freedom Mortgage that a new credit report will be ordered to exclude all credit disputes.
  From 10/11/2022 - 11/01/2022, numerous emails were sent within ******************* referencing phone calls to borrower requesting the removal of the credit disputes. There were also emails from 11/01/2022 sent to the Borrower and ********'s realtor regarding the need to remove the credit disputes.
  Numerous emails were from Processor to Borrower from 10/24/2022 - 10/28/2022 detailing dollar amount required to close as it had been determined Borrower was short funds to close.
  A new credit report was issued on 11/01/2022 after all credit disputes were removed.
  A new *** was run on 11/01/2022 after credit disputes had been removed that resulted in a "Refer" finding due to debt-to-income issues and Borrower being short funds to close.
  Willow Bend Mortgage received on email from Freedom Mortgage on 11/02/2022 confirming that the Borrower's ******* money could not be documented (it was paid in cash) resulting in Borrower being short cash to close. ******** obtained a small gift from a relative which was not enough to satisfy the required funds to close of $11,550. Borrower informed Willow Bend Mortgage that Borrower did not have $11,550 in funds to close the loan. Based on an interview with the Processor, Processor had advised ******** repeatedly via phone calls that Borrower was short cash- to-close and that ********'s ******* money could not be used as it was paid in cash.
  Freedom Mortgage issued a suspense on the loan on 11/3/2022 and requested to speak to Loan Officer to confirm if loan should be sent for denial. As such, Freedom Mortgage denied the loan on 11/7/2022.
  Summary
  Purchase Contract was entered in by Borrower after pre-approval letter had expired.
  Borrower delayed removing credit disputes for Willow Bend Mortgage ordering a new credit report without the credit disputes timely.
  Borrower ultimately never had verified cash to close.
  Willow Bend Mortgage did everything in its power to provide a loan to Borrower.
  
  I have also provided applicable attached documents for your reference. Again, please let me know if you have any other questions.
  
  ***********************
  President
  See Attachment/File: Credit Repull - ********

  Customer response

  02/10/2023

  (The consumer indicated he/she DID NOT accept the response from the business.)
  *********************** called and emailed me on 10/12/2022 to reach out to the credit bureaus and have the disputes removed from 3 specific accounts from all 3 credit bureaus. I asked him was this time sensitive, especially because he reached out to me on 10/12/2022 (see attachment). It was only a week before the closing which was scheduled for 10/20/2022. He said no, he told me that it's just something that is necessary and provided me the numbers to each bureau.
  Each credit bureau has a different time frame from ***** hours for disputes to be removed. Even when they are removed, there is a chance for them to return, I would have to call them again to have them removed again, and the disputes would have to be removed simultaneously with all 3 bureaus. The length of time to have the disputes removed was predicated upon the Equifax, Experian, and ************ There was no way for it to be done any faster.
  Also, I received an email from ********************* that all the disputes have been removed. (See attachment)
  The cash needed to close was verified with ******************* and *********************. I had a text message from *** saying he thought I had closer to 20k, and I replied I did. (See attachment)
  With the gift from my relative, my portfolio savings, and bank accounts, I had well over $11,550. It was stated to me by *** and his team that I needed 20k, which I had. There were plenty of funds in my account, I sent paperwork for each account. Two checking accounts, two savings, an ACORN retirement portfolio account, and a gift from a relative. Willow Bend has all these documents.
  The ******* money was not paid in cash, it was paid with a cashier's check requested by ********************* (see attachments). It was also stated that it would be used towards the closing cost. I reached out to Freedom Mortgage and they have confirmed that they except cashier's check for payment for the ******* money.
  I did not receive any phone calls from Freedom Mortgage or Willow Bend Mortgage that the ******* money could not be used at any point throughout this process.
  With the inaccuracies that you have been provided, the entire process was handled poorly.
  
  See Attachment/File: Cashiers receipt

  Business response

  02/24/2023

  The timing of the credit dispute removals was a delay issue to satisfy a condition of loan approval. The real issue was the borrower did not have enough verified funds to close on the purchase.
  
  After personally performing a review of the documentation in the loan file, I determined the following:
  
  Willow Bend Mortgage received a verbal authorization from borrow of intent to proceed with loan on 9/21/2022.
  Willow Bend Mortgage received Purchase Contract dated 9/21/2022.
  Purchase Contract Signed and dated 9/21/2022.
  oBuyer had 10-day financing period.
  oCash portion of Sales Prices was payable by Buyer at closing of $11,375 and financing of $313,625.
  oEarnest money of $3,500 and $300 as the Option Fee ($3,800) was due within 3 days after the Effective Date of 9/21/2022 at 9:31pm EDT.
  oClosing Date on or before 10/20/2022.
  Borrower deposited $3,800 in ******* money deposit per the purchase contract (these are verified funds)
  Purchase Contract Amendments received:
  oAmendment dated 9/24/2022 whereby Seller would pay $500 of buyer's expenses (excluded from FHA requirements of buyer)
  oAmendment dated 10/8/2022 whereby Seller would pay $5,000 of buyer's expenses (excluded from FHA requirements of buyer)
  oAmendment dated 10/11/2022 whereby Seller would pay $5,500 of buyer's expenses (excluded from FHA requirements of buyer)
  Gift Letter dated 10/17/2022 received from relative in the amount of $7,000 with no bank account number referenced. ********************** Bend has a bank account from the gift donor that has enough funds for the gift funds, but do not have proof that the funds came from donor's account so could not use these as verified funds.
  Original Conditional Approval was based on FHA ****% loan-to-value but was reduced on to 95% loan-to-value requiring a manual underwrite and increase amount of cash to close from borrower.
  
  Based on my assessment of the verified assets, timing of Purchase Contract Amendments to increase the seller credits to borrower, and date of Gift Letter received on 10/17/2022 which were well past the contractual 10-day financing period ended, the borrower never had enough verified assets to close on the purchase at the increased loan amount.
  

  Customer response

  03/04/2023

  (The consumer indicated he/she DID NOT accept the response from the business.)
  First you said the issue was that the disputes were not dealt with within a timely matter; but *********************** called me 1 week before the closing date to take care of them. The removal of the disputes is done by the credit bureaus, who control the speed at which the disputes are removed.
  Secondly, you said the ******* money was not accepted because it was paid in cash. That also was not true, it was paid with a cashier's check that can be used at closing. This was confirmed by the ********************* and Freedom Mortgage.
  Now you're referring to the gift of $7,000 not being verified, which is also not true. The paperwork for the gift from my sister was received and approved by ********************* and *******************. My sister initially did not want to put her account number on the paperwork, I asked *** and ****** what could be done. It was approved by *** and ****** that she could put the last 4 digits of her account number on the paperwork (see attachment). *******************, ***************************, and ********************* all received an email from me with my sister's bank statement, including the full account number from which the funds were withdrawn. That email was sent by me on 10-28-2022 at 1:28pm.
  This constant notion that there were not enough funds, and/or verified funds, is extremely inaccurate. The funds from the ******* money ($3,800), the gift ($7,000), the Seller's Credit of ($5,000), plus the funds from my 2 checking accounts, 2 savings accounts, and an ACORN 40lk account, were all approved and verified by the Willow Bend team. Your reference to me not having $11,550 is also inaccurate, Willow **** has all my bank statements, which totaled more than enough funds. *********************** can fill in and concur on all your missing information. He was included in all the emails and spearheaded all discussions about my loan.
  
  
  See Attachment/File: scan 10.pdf

  Business response

  05/01/2023

  I apologize that my explanations have not been clear to you.  You state you had plenty of funds to close, but Willow Bend Mortgage was unable to verify the funds per our investor requirement, which extend beyond you simply providing statement balances.  All funds used for closing must be sourced and verified which Willow Bend Mortgage was unable to confirm.  In addition, your debt-to-income was too high for the loan program which resulted in your loan approval being denied.   

  Willow Bend Mortgage has responded to your initial complaint and subsequent correspondence explaining the denial of your loan.  Willow Bend Mortgage has no other information or explanation to add to its responses.  Therefore, this will be the last communication Willow Bend Mortgage will be providing related to the subject complaint.

  Respectfully,

  ***********************, President

  Business response

  05/01/2023

  I would like to state the following correction to my response:

  ******** requested verbally to withdraw the loan on November 4, 2022.  Subsequently, the lender, Freedom Mortgage, issued a loan denial on November 7, 2022. 

  Customer response

  05/18/2023

  Willowbend alleges that I verbally withdrew the loan on November 4, 2022. However this is inaccurate and appalling. I, ******************************* did not at any point verbally withdraw from the loan. I was in communication with **************** passed November 4, while he was working on the getting the loan completed. I have a photo of my text thread with **************** communicating with me. I also have photos of emails that *************** sent to me with documents to sign for the loan. The emails, with the documents attached, for me to sign, one was November 2 and the other on November 9 2022.
  

  I never withdrew verbally and/or any other fashion. I did not speak to anyone at Freedom Mortgage or Willowbend in regards to withdrawing. 

  This too is inaccurate. I would like to hear the audio of what they are alleging. 

  Customer response

  06/15/2023

  Consumer called in 6/15 to check on the rebuttal response from 51/18 sent by him to send to business to re-open complaint.

  Business response

  07/18/2023

  I have made several attempts to speak with someone at the BBB regarding this new claim as the previous complaint had been closed on 5/11/2023.  

  As stated in my last response prior to the complaint being closed by the BBB, I will not be responding any further as all information, timeline and documentation has been provided in response to the original and this new complaint.  No additional information or documentation was presented in this new compliant that would alter any previous responses given.  

  The BBB investigator managing this claim can contact me directly with any other questions.

  Respectfully,

  ***********************, President

   

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