• Report: #1037282
Complaint Review:

LoanDepot.com

  • Submitted: Sat, March 23, 2013
  • Updated: Sat, March 23, 2013

  • Reported By: Jennifer — Silver Springs Florida
LoanDepot.com
26642 Towne Centre Drive Foothill Ranch, CA 92610 Foothill Ranch, California United States of America

LoanDepot.com Gave every indication we were approved for a home loan; cancelled approval 10 days prior to closing. Foothill Ranch, California

*REBUTTAL Individual responds: The full story

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LoanDepot came highly recommended to us by a family member who works for HUD, so we decided to give them a try. We contacted Doug Bontemps and told him from the very beginning that my husband works on a commission basis and had recently returned to work after a 1 year layoff. We were told this would not be a problem in LoanDepot securing a loan for us during our home purchase process. Regardless of employment status, we had a significant amount of cash to offer as a down payment, but were told we would only need 3.5% down (FHA loan) on an $83,000 mortgage. We wold have been more than happy to put down the standard 20% to secure this home loan, but Loan Depot insisted on going the FHA route.

Here we are, 10 days prior to closing. After paying $500 for a home inspection, $200 for a septic inspection, $450 for a LoanDepot-ordered appraisal, and $2500 for an earnest money deposit,  I received a call from Jesse Smith (manager) on 3/22 (16 days prior to a closing date we were already given) only to be told that our loan was cancelled because of my husband's pay being commission-only based! Again, Loan Depot--and particularly Doug Bontemps--knew from the very beginning that my husband's pay was commission-based.

This would have been the 7th home in our lifetime that we've purchased since 1995.

This is the first and only time we have EVER been refused a mortgage.

This report was posted on Ripoff Report on 03/23/2013 03:59 AM and is a permanent record located here: http://www.ripoffreport.com/reports/loandepotcom/foothill-ranch-california-92610/loandepotcom-gave-every-indication-we-were-approved-for-a-home-loan-cancelled-approval-1037282. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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REBUTTALS & REPLIES:
0Author 0Consumer 1Employee/Owner
Updates & Rebuttals

#1 REBUTTAL Individual responds

The full story

AUTHOR: Doug - (USA)

I no longer work at this company and I just ran across this posting.  I remember this customer even though it was 4 years ago.  And while her post is not a complete lie, it certainly is not 100% accurate.  I had been in the industry about 15 years when she applied.  Just about anyone in my industry is aware that there is no way we would tell a commission income applicant at a new job that they automatically qualify for a loan.  We give the applicant all of the information – good and bad – and then let them make the decision.  But we are NOT supposed to discourage someone from applying - it’s a violation of Regulation B to do so.  When you tell someone both the good and bad information, I guess its human nature that they tend to hear only the good.  However, I understand her frustration. Purchasing a home can be both exciting and stressful.  Emotions can run high.  But this is not a reason to ignore the guidelines that have been put in place to protect the consumers.  Yes, the lenders are also trying to protect themselves, but the lenders’ safety is definitely not the priority. 

Think of what might have happened if we just gave her the loan with no regard for her ability to repay it.   She wrote about the money that was spent on an inspection and a home appraisal.  But what happens when you can’t make payments anymore?  How much would it cost to uproot your family from a place you’ve called home for several years?  How about receiving collection phone calls and letters from the lender every day?  Or coming home to notices taped to your front door?  How about the humiliation of moving while your friends and neighbors watch?  What about being forcibly evicted by local law enforcement?  Would you rather go through that heartache, or just pay for an appraisal? 

I worked for Loan Depot for over five years.  It’s a great company.  I left to start my own business, not because the company was bad.  I know that they do whatever they can to approve loans.  But not everyone qualifies, that’s just the way it is.  The reason why she was “never refused for a mortgage” in the past is because she never tried to acquire a mortgage after Dodd-Frank.  And in accordance with the Home Valuation Code of Conduct, lenders cannot choose the appraiser; they just facilitate it being ordered.  Again, the new rules were put in place to protect the consumers, not the lenders.  I hope that her husband’s job worked out and that they finally purchased the home that they wanted.

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