Embrace Home Loans Appraisal Scam ??? Newport, Rhode Island

Was working with a loan officer at Embrace, who indicated based on my last two years income, my credit and home equity I should have no problem qualifying for a consolidation loan.  He indicated an appraisal was necessary, which is customary, so it didn't raise any red flags.  After I paid $395 for an appraisal and submitted all of my paperwork.

I was contacted back by the loan officer, saying that based on my current income the loan cannot be processed at that he would look into other options and contact me in a few days.  That was 2 and a half weeks ago.  I have not heard from him or anyone else, my six phone calls to the company have not been returned and requests to speak with a manager / supervisor have gone unanswered.  It's like they drop off the face of the earth after the appraisal fee is charged. 

I would be very skeptical of them.  I would like to hear if anyone had a positive experience with this company.