Aurora Financial Services, Inc

Date: Thu, Dec 15, at 1:PMSubject: To: "***" Loan Denied. Customer did not disclose rental property in Florida on the applicationWe discovered the rental property on the tax returns when the file was submitted to underwritingWeekly rental
income can NOT be counted The taxes and condo fee expense on the property caused the Debt ratio to be 48%Fannie Mae and Consumer Financial Protection Bureau require lenders to keep Debt ratios under 43%Loan was denied Customer was upset that he had already paid for the appraisal and felt that since he provided tax returns right away, they should have been reviewed and appraisal not ordered if they didn’t qualifyWe explained the processing and underwriting processes to him but he wanted his appraisal fee refunded or at least half of itHad client been upfront about the Florida property, we could have told him that he does NOT qualify and the Appraisal would NOT have been orderedWe don't make money denying loansWe're merely following government regulations and guidelines.Prince A

[To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the responseIf no reason is received your complaint will be closed Administratively Resolved] Complaint: ***I am rejecting this response because:Regards,*** *** I fully understand that loan can be denied or accepted like any other businessHowever, my question to you is why denying my loan AFTER GIVING ME A COMMITTMENT LETTER and only two days prior to the closing date ? How can that be? We did not lose our job nor apply for any credit that could disquality us AFTER THE COMMITTMENT LETTERI am totally devastated and I do not want to have this happen to anybody elseThis is unacceptable on the risk of losing my down payment due to unable to get a loan on the closing date on the purchase aggrement which you are very aware of since I constantly asking the status of my loan regarding thisYou should not put me in this situation and most especially lose the house I want after months of looking for oneThis is unfair to us and mostly leaning on discrimination since we do not have any idea on why did you turn down our loan

Hello,
It takes many labor hours and actual verification costs in processing a mortgage loan in this highly regulated environmentWe worked very hard to get this loan approved*** *** was made aware of the following prior to locking in her
loan.
The title company she and her Realtor choose would have to go through our chosen vetting process as required by the ***.
The Rate Float down policy goes in effect if rates fall by bais points days prior to closingThe Title company client choose refused to go through the required *** vetting process and Rates had fallen from the time client locked in the loanWe feel this client acted in bad faithRates had fallen prior to her closing and she knew she wasn't eligible for the float down policyShe went with another lender to get a lower rate after her loan was approved.
As a customer service gesture, we will NOT seek the $Cancellation fee

Tell us why herWe've reviewed the recorded phone calls and email communication between the client and our Loan Officer, Louis T***The main issue with this loan is OccupancyAccording to the FBI, the #Fraudulent activity in the Mortgage world is Clients buying or refinancing loans as Owner
Occupied properties with no Intent on living in the property Our findings make it impossible for us to continue with this loan as Owner Occupied Following is the breakdown of the issues that *** *** brought up:Incorrect Statement #1When I first contacted Aurora, I was quoted at a specific percentageI “locked” in my rate by signing their paperwork and the mortgage broker assured me that the loan would close in daysA few days after I had signed the “lock”, I was asked to sign another lock because the mortgage broker failed to realize that because my residence was a condo, they would require either a higher interest rate, or I would need to “buy down” my interest rate The broker knew from the first phone call that I lived in a condo, but failed to tell me that the interest rates on condos are higher.NOT TRUEThe loan was locked as a condo. When he originally called he quoted *** and I informed him that rate wasn’t applicable because it was a condo. We re-disclosed on 7/7/because the appraised value came in low and the borrower chose to keep loan to value at 75% so we lowed the loan amount. The re-disclosure was not due to originally locking the loan as anything other than a condo. There is email communication that shows that the lender was aware that the property was a condo and the lender informed the client that a condo questionnaire would be needed before the loan was even lockedIncorrect Statement #2Since day one in dealing with Aurora, I had mentioned that I travel back and forth to Florida and my home in VirginiaIt wasn’t until the loan was in the last stages of completion, that Aurora asked if I was living in FloridaI told them, that I live in both VA and in FloridaOnce they learned that I had an apartment in Florida, they told me that my loan was considered an investment property and they could no longer help me.NOT TRUEWe never found out about the client having a lease in Florida until his paystubs and W2’s were reviewed and showed a Florida addressAlso, after the Appraisal was received, we found he rents of the bedrooms in his “Primary Residence” in Virginia Incorrect Statement #3 The broker informed me that they would be able to resume working on my loan when I returned to VAThis was a lie.NOT TRUEWe said we would ‘Revisit” the file and we have email communication as proofWe never said we would resume anything. Aurora Financial nor any Lender in the United States makes a Profit denying loansWe only make a Profit when we successfully Approve and Close loansWe can NOT Approve loans that Violate Federal and State LawsIt’s our Fiduciary duty to protect clients from themselvesThe facts do NOT justify this home as Primary and we can NOT Approve the loan based on the factse

[To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the responseIf no reason is received your complaint will be closed Administratively Resolved] Complaint: ***I am rejecting this response because: on the income verificationWe never give them any number on our monthly incomewe estimated and gave them our paystubs and irs Was well as our tax returns right in the beginning of the loanHow can our income change within a month? we never have an accident nor disabilty claims done within an monthGranted they switched the loan to an investment loan, would they still profile our income first before processing the loan itselfWould that be the first one to be done? I cannot believe that our income will be less $on AVERAGE with a monthThere have been miscalculations on this an I demand there calculations and paperworks on them so I can see it how they did itFor the minute I applied for this loan I have bad feeling about it but John B*** insisted that they can pull this one offI was stuck with them and trying to give all the paperworks not once but twice as if nobody really reading or handling our loan rightPlease send me all my paperworks since I dont trust you anytrhing about youAnd please provide me all the calculations you have done and considered in calculating our incomeI want pursue this and file lawsuit if I have too
ThanksRegards,*** ***

Hello,
We had to DENY this borrowers loan for a few reasons.  
1. They applied for the loan as a Second Home. The property didn't qualify as a Second home and had to be changed as an Investment Property. 
2. Income reported at the time of...

application was $4.916 per month. After income was validated from the employer and IRS, qualifying income was $3,922.80. 
Given the drop in income, their Debt to Income Ratio went above government guidelines. 
We had no choice, but to deny the loan. 
The $1,000 credit the client is referring is if we don't close on time. We didn't close the loan, so no credit is available. The link below shows what is eligible and not eligible for the $1,000 On - Time Closing Guarantee. Second Homes and Investment properties are NOT eligible for the On-Time closing guarantee. 
https://auroraf.com/on-time-closing-guarantee/
Had the client been upfront about her income situation, we would denied the loan upfront without having to go through the loan process. 
 It's important for clients to know we don't make a profit denying loans. We only make a profit once we close a loan. It's in our interest to find legal ways to approve loans.
We will NOT be crediting the money for the appraisal. Appraisal fees are paid to 3rd party vendors, not Aurora Financial.
We're happy to transfer the appraisal to another lender, at the clients request.

[To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed as Answered]
 Complaint: [redacted]
I am rejecting this response because: Aurora is running the clock out on my 60 day appraisal that I paid for.  They have asked me for proof that I live in my home in Virgnia, in which I do live there full time.  I've asked them what type of proof they require to show residency and they have not responded. I've invited them to come out to my home and visit me anytime they wish.  They told me to wait until I moved back to my residence in Virginia and they would revisit my loan.  They haven't revisited anything.  Everything I've told them has been true.
Regards,
[redacted]

[To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed as Answered]
 Complaint: [redacted]
 
My wife  and  I am rejecting this response because: You were wrong from the very beginning!!  Your company was given all the necessary information up front with the tax returns we supplied you with the FIRST DAY WE STARTED DOING BUSINESS WITH YOU IS.  Aurora Financial has a bunch of INEPT, SS, WHO RIP OFF UNSUSPECTING PEOPLE!!!! Aurora financial was given SEVERAL CHANCES to DO THE RIGHT THING AND REFUND OUR MONEY!!  However Aurora Financial decided to be DECEITFUL SS and NOT ACCEPT ANY WRONG DOING (you were wrong from the start about incorrectly reviewing our tax return you INEPT IS)!!!!  My wife and I will be sure to let EVERYONE WE COME IN CONTACT WITH KNOW  ABOUT THE SS AT AURORA FINANCIAL AN HOW THEY MISTREAT THEIR CUSTOMERS!!!! I will also put our review of your company on YELP on your personal page, so others can see how you mistreat their customers you SS!!!
Regards,  [redacted]

Again, client should have been upfront on the Mortgage Application. Had the Florida property been disclosed, as required by Law, we would have advised client he did NOT qualify. We spent hundreds of dollars on Labor and ordering verifications. It's a waste of time for everyone when clients are NOT transparent. Mortgage Lending guidelines are very strict. Lenders do NOT make money denying loans. We only make a profit when we are able to approve, close and sell loans in the secondary markets.  We acted in good faith. We wish client had done the same. We will NOT be refunding any portion of the Appraisal fee since that was a 3rd party fee and NOT an Aurora fee.

[redacted] loan was canceled. Three weeks had gone by and client was not able to coordinate with the appraiser to schedule the inspection. Locks are good for 30 days. We didn't want client to pay for a lock extension and advised him we would be canceling. He could reapply when he was ready. Our...

accounting department didn't mail his appraisal fee due to a miscommunication / an individual being on vacation. As a customer service gesture, we're refunding [redacted] the original payment of $375 plus an extra $100. Total amount of check to client $475.00.  We sincerely apologize for the delay.

Hello,
When client/s apply for a loan, they can be Approved or Denied for the loan. Lending guidelines are very strict and Lenders have to follow them. Our Underwriters felt this was a very HIGH RISK loan and denied it. We stand by our position.
As a customer service gesture, we'll credit you the cost of the appraisal, if you agree this resolves the matter permanently.

Review: As a first time home buyer I am very disappointed in the means with which Aurora Financial has decided to facilitate my home mortgage process. On October 20th, 2014 at 1:13 PM, I made a phone call to Jason L[redacted] with Aurora Financial to inquire what methods I would need to take should I decide not to pursue a mortgage with Aurora Financial due to several pending issues. Jason at first mentioned that there was nothing I needed to do on my end if I so chose to not get a mortgage loan through Aurora. That I could infact ignore the rest of the emails and phone calls and take no further action. Jason then put me on hold for a few minutes and came back to tell me that my loan had already been approved and that I owed Aurora $990. This, however, was a false statement from Jason, because according to the Aurora loan portal, my loan had in fact not been approved as of October 20th, 2014 4:09 PM. I have an exisiting screen shot of the Aurora Loan portal dated October 20th 2014, at 4:09 PM confirming that my loan was NOT approved.

In fact, on the morning of October 21st, 2014, I received an email from Jason’s supervisor, Marzetta Hamilton, stating in bold that my loan was now approved. A similar email was sent a month prior asking for financial documents but did not contain the same statement. In all of my correspondence with Aurora I never received an email saying my loan had been approved until the day after I spoke on the phone with Jason and was given false information. Nothing changed from October 20th to 21st in my loan status for it to suddenly be approved. On the loan portal on October 21st, 2014, Aurora placed a check mark next to the approved status. Had I understood completely from Jason & Aurora Financial where my loan status was at the time that I made the call on October 20th, I could have made a fully informed decision that would best benefit me as a first time home buyer.Desired Settlement: I should not be charged the $990 withdrawal fee due to false communication between the Aurora Financial Loan officer and myself.

Business

Response:

Hello,

Review: I applied for a mortgage loan with Aurora Financial with John B[redacted] mortgage broker in June 2014 and promising me that the closing is within 3 weeks with a guaranteed of 1000 if not closed on the said date. In the middle of my application, Marie C[redacted] handled my loan and told me that John B[redacted] is not with the company anymore. The initial application for the loan was for July 14, 2014 closing and when Marie C[redacted] took over she told me it was July 21st instead. Marie C[redacted] who is another mortgage broker for the company for the Aurora Financial gave me a commitment letter on July 14th which I gave to me attorney and realtor. July 21st was our closing date in which the closing attorney in Connecticut [redacted] contacted me about this on July 17th at around 9am. He told me he was called in by [redacted] Title in which Aurora Financial hired to close my mortgage loan. Then on the same day July 17th at 233pm, Marie C[redacted] called me an told me our loan was denied. I asked her why she told me it is due to insufficient income. Now, I am scrambling to get another loan or lose my deposit for $18875. Marie C[redacted] told me I would not get reimbursed for the house appraisal I paid nor the $1000 promotion they have that they can closed a loan for 3 weeks. I want to be reimburse with $375 house appraisal, $1000 promotion ads they have and most especially my deposit of $18875 for the house I tried to buy. This is so devastating to me as to lose my money and lose the house I been looking for months. I want them to stop this practice and not to do it to anybody else. I do hope you can help me.Desired Settlement: I wish to be reimbursed of the house appraisal of $375, the promotion ads they did not honor that they will close my loan within three weeks and if not they will give me $1000 and most especially for my deposit of $18875 for the house I buy since I failed to give a loan according to the purchase agreement.

Business

Response:

Hello,

Review: I contacted Aurora about a refi on my home. After asking a few questions about my home value (which is around $1.3M to $1.4M), the

refi amount (about $260k), if I had an 2nd or 3rd mortgage liens (I do not), any home equity loans or lines of credit (I do not), and my

credit score (which is over 800), they seemed excited to offer me a refi.

However, the person I talked to gave me a much higher rate on a 20 year fixed (0 points) for a $260K refi

than is advertised on the Aurora web site. The rate he quoted was around 3.75%, but the web site states 3.25%.

I told him that the web site had a rate on this loan of 3.25% and he agreed and said the web site was wrong.

I told him fine but I wanted the rate of 3.25% anyway. He told me he would check with management and call me

back later that day. That was Wednesday. I have not received any calls from Aurora.

I called Aurora again this morning (May 31) and spoke with [redacted] and told him that I was expecting a call

back from Aurora about the rate that they advertised on a 20 year fixed of 3.25%.

[redacted] said that the rates are higher than that now at 3.7% and were headed higher. I told him I wanted and expected

Aurora to honor the advertised rate of 3.25% and I what a call back to confirm that this rate would be provided.

As yet, I have not received a call.

As of 6 pm May 31, the 3.25% rate is still advertised on their web site. See https://auroraf.comDesired Settlement: I believe Aurora needs to honor the advertised rate of 3.25% for a fixed 20 year refi.

Without that, nothing works for me and I will report them to state, local and Federal

agencies as wel as any and all consumer rating organizations. I may also bring

a legal action against them in civil court.

Business

Response:

After

review, it appears our systems were NOT able to update rates in real

time given the extreme volatility in the rate market. Rates on our website are for indication purposes. A rate of 3.25% is not available in the market. We are able to offer 3.50% as of today which is below are published rate of 3.75%. We'll also offer a lender credit of $1,000. This rate can change hourly and it's not guaranteed until locked.

Please let us know if you wish to move forward. We sincerely apologize.