DHI Mortgage Company, Ltd.

Complaint: ***
I am rejecting this response because: I was advised by MLO not to apply for MCC because it would delay my closing on the home My best interest were not in mind when DHI handles my loan The MLO strategically went against my interest in the MCC and put me in a position that was impossible to apply for it at the beginning because we were waiting on “income requirements,” and then it was too late at the end because we had to rush because our lease was early terminated in order for us to “ hurry to get into the house.” DHI consistently proved to not have our best interest in mind throughout the entire process
Regards,
*** ***

Thank you for providing *** *** *** *** *** the opportunity to review and respond to the customer’s complaint. The customer did inquire about the MCC program and our records contain email conversations from April 17, regarding the MCC. The *** Mortgage Loan Originator (“MLO”) stated in an email “…MCC is a possible tax credit you can receive at the end of the year on top of your standard mortgage interest deduction. You should consult with your tax professional (which I am not) to see if you will benefit from the program.” The MLO also asked the customer to let him know if he wanted to proceed with the MCC program so he could assist with the application process. He also advised “You should not close on the loan if you do want to get MCC and we can still apply for it.” The customer replied to the MLO via email that he wanted to proceed without the MCC program as he did not want his loan closing delayed. The *** Housing Finance and Development Corporation (“*HFDC”) is the issuer of MCC’s in ***. The customer neither completed the MCC application process, paid the MCC application/processing fees, nor was his loan approved for the *HFDC MCC program. Unfortunately, federal eligibility regulations do not allow the *HFDC to approve and issue an MCC after the purchase transaction/loan has closedTherefore, *** disagrees with the customer’s claims. He was provided an opportunity to apply for the MCC program and chose not to proceed. Please note, the MCC program does not reduce a customer’s mortgage payment, only his income tax liability, if applicable. However, the customer could still seek the advice of a tax professional regarding the itemization of mortgage interest and taxes as income tax deductions. As with the MCC program, it may still be beneficial for the customer to file a revised W-withholding form with his employer to reduce the amount of federal income tax withheld from his wages and increase his take home pay. By applying the increase in his take home pay towards his monthly mortgage payment, the effective monthly payment would be lowered. Thank you again for the opportunity to respond *** ***
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The above referenced complaint was received at the address of our parent company, D.RHorton, andwas forwarded to my attention for response.We have discussed this matter with the customer and she Is aware their loan was not locked at the time of the loan applicationThis Is evidenced by the
Lock Disclosure/Agreement signed at application selecting the option to float the interest rateThe agreement contains the general lock terms and conditions under which the loan could later be locked.Unfortunately, the market changed and Interest rates have increased since the customers completed their loan applicationThey are not comfortable with the increased proposed mortgage payment . Since the time of the complaint, they also discovered that their current landlord will not let them out of their lease which expires In May They do not have the funds to buy out the lease and are unable to afford two housing payments until MayTherefore, their loan application has been denied.DHI Mortgage has also recommended the customers join our Home Buyers ClubThis is a free service which provides home ownership counseling and may be able to assist In Improving their credit score. This would put them In a better position to purchase a home once their lease has expired, plus a higher credit score would enable them to qualify at market interest rates

Complaint: ***
I am rejecting this response because: This is not true Most people use TurboTax and do not have tax consultants Likewise, most people get assistance from their MLO when it comes to applying for a MCC; I’ve talked with a number of individuals whom have purchased homes recently The subject of MCC was brought up early enough in the process, so that it could be handled in a way that wouldn’t delay closing, *** *** failed to work with me on this matter Furthermore, the poor attitude and unprofessionalism of *** *** has become extremely apparent in the responses and interactions that I have received from them Bottom line is that *** *** consistently fails to work with their customers and is unable to hold clear lines of communication In this case, blaiming me for the failure of processing the MCC makes absolutely no sense The buyer should state that they want a MCC, and the MLO begins assisting with the application process: it is really as simple as that However, that didn’t happen in this case; instead, there was deflection about seeing a tax guy to see if I qualify, but I already knew I qualified It seems, after receiving these lackluster responses, that *** *** coaches their MLOs to deflect in order to delay the MCC process and avoid additional paperwork, which ultimately hurts the customer
Regards,
*** ***

Revdex.com:
I have reviewed the response made by the business in reference to complaint ID ***, and find that this resolution is satisfactory to me Despite the reply I am still extremely disappointed in the way our closing endedWe understand audit controls since we work for a bankWhat I don't understand is how quality control did not see the funds were not used and proceeded to make multiple contact with our family memberThis is not the only inaccuracy from DHIWe received additional documents to sign with inaccurate information on the form, which I had to addressIt is unfortunate an exciting time and first experience ended poorlyI hope going forward there are better processes in place so another person does not experience the same situation.
Regards,
*** ***

Thank you for providing [redacted] the opportunity to review and respond to the customer’s complaint.  The customer did inquire about the MCC program and our records contain email conversations from April 17, 2017 regarding the MCC.   The [redacted] Mortgage Loan...

Originator (“MLO”) stated in an email “…MCC is a possible tax credit you can receive at the end of the year on top of your standard mortgage interest deduction.  You should consult with your tax professional (which I am not) to see if you will benefit from the program.”  The MLO also asked the customer to let him know if he wanted to proceed with the MCC program so he could assist with the application process.  He also advised “You should not close on the loan if you do want to get MCC and we can still apply for it.” The customer replied to the MLO via email that he wanted to proceed without the MCC program as he did not want his loan closing delayed.  The [redacted] Housing Finance and Development Corporation (“*HFDC”) is the issuer of MCC’s in [redacted].  The customer neither completed the MCC application process, paid the MCC application/processing fees, nor was his loan approved for the *HFDC MCC program.  Unfortunately, federal eligibility regulations do not allow the *HFDC to approve and issue an MCC after the purchase transaction/loan has closed. Therefore, [redacted] disagrees with the customer’s claims.  He was provided an opportunity to apply for the MCC program and chose not to proceed.  Please note, the MCC program does not reduce a customer’s mortgage payment, only his income tax liability, if applicable.  However, the customer could still seek the advice of a tax professional regarding the itemization of mortgage interest and taxes as income tax deductions.  As with the MCC program, it may still be beneficial for the customer to file a revised W-4 withholding form with his employer to reduce the amount of federal income tax withheld from his wages and increase his take home pay.  By applying the increase in his take home pay towards his monthly mortgage payment, the effective monthly payment would be lowered.  Thank you again for the opportunity to respond.  [redacted]
 
[redacted]

DHI Mortgage Company, Ltd., (“DHIM”) appreciates the opportunity to respond to Ms. [redacted]’s concerns.  DHIM strives to provide excellent customer service and we are disappointed that Ms. [redacted]’s experience was not what she expected or deserved.  The [redacted]’s were under contract for the purchase...

of the subject property on 3/16/2015.  That contract was contingent upon the sale and closing of their current residence in Colorado.  The original closing date on the contract was May 29, 2015.  At the [redacted]s' request, DHIM attempted to have the loan approved so that the [redacted]s could close earlier in the month of May.?On May 4, 2015, [redacted], Gulf Coast Branch Manager e-mailed all DHIM parties involved in the [redacted] transaction along with the [redacted]s' Real Estate Agent, [redacted] to make sure that everyone understood that DHIM would not schedule a closing date until the loan was approved and all conditions were cleared.  On May 6, 2015, the loan was credit approved with 3 minor conditions, 2 of which would have been taken care of at the time of closing.  The last condition was documentation from the borrower.  Mrs. [redacted] informed DHIM that she had the required documentation however, she would not provide it until DHIM advised her how all the inconveniences could be “resolved”.  The resolution offered by DHIM was to close the loan as quickly as possible, 3 weeks early. That resolution was not acceptable and on May 7, 2015, Ms. [redacted] sent an e-mail withdrawing her loan application. ?The lending process is sometimes very frustrating and stressful.  DHIM understands those frustrations and worked hard to accommodate the early closing for the [redacted]s and apologize for any miscommunication and additional stress the process may have added to their move.  As DHIM is not a party to the purchase contract we are unable to assist with the [redacted]’s request for the return of their earnest money deposit.

DHI Mortgage stands by it's response.  The MLO recommended the borrower consult with a tax professional regarding the MCC program.  He also stated that the borrower should not close if he wanted the MCC program as he could still apply.