Embrace Home Loans, Inc.

Embrace Home Loans (Embrace) is in receipt of a notice of complaint from Ms. [redacted], and recognizes the circumstances she had referenced.  Embrace is engaged in the process of transferring its loan servicing functions to a new resource.  [redacted] is the name of the company that...

will be responsible for the servicing of Ms. [redacted]'s loan going forward, but it appears that when she spoke with them the information related to her account had not been completely transferred yet.We have reached out to her today with an offer to contact our office directly should she have any questions regarding this process, or any other need relative to her account.  If you have any questions or concerns, please feel free to contact me at your convenience. [redacted], CCOEmbrace Home Loans, Inc.

Embrace Home Loans, Inc. (Embrace) is in receipt of a notice of complaint from Mr. & Mrs. [redacted] regarding their recent refinance transaction.First, let us apologize for the extended period it has taken to prepare this response to the complaint.  Clearly there were some confusing points...

in the text of the complaint, which caused us to reach out to more resources to determine exactly what had occurred.Mr. & Mrs. [redacted] had applied for a streamline refinance, as noted, and there seemed to be some unusual delays in obtaining income verification documentation from the IRS and SSA, but toward the end of May it appeared that all information had been obtained and the file was prepared to close.  Their loan officer, Mr. [redacted], advised them that they would be able to bring the payment due on June 1 to the closing, but he was not aware that, as noted in the complaint, they had gone ahead and delivered that payment on or about May 28th.Mr. [redacted] was not aware of this payment until he heard from Mrs. [redacted] on the date of the closing suggesting that the payment they'd made had not been considered in preparing the loan payoff amount, which was correct since Mr. [redacted] had not known to be ready for that event.Recognizing the discrepancy afterward, it was determined that re-closing the loan was the best avenue to take, but indeed the Settlement Agent had already deposited the check they'd brought to closing - a check they would not have needed to bring if Embrace had understood that they'd already made that payment.  It resulted in an inadvertent overdraft fee to the [redacted]s from their bank.A subsequent closing was set for the following week, and the closing documents show that indeed, Embrace applied two lender credits to the transaction totaling more than $4700.00, and requiring no further monies from the [redacted]s at closing.  The first payment due under the new loan would be on August 1, and no payment would be due in July, as had been promised.  (The only possibility of skipping both the June and July payments might have occurred if they had not made the June payment when they did, and it was rolled into the new loan amount.)Embrace is certainly disappointed that their file incurred the kind of irregularities that it did, but it does not appear that they were the result of any failures or intentional actions by either side.  Embrace will agree to reimburse the [redacted]s for the overdraft fee they were charged by their bank as a gesture of good faith, and will deliver those funds to them directly.If you have any questions or concerns, please feel free to contact us at your convenience.[redacted], CCOEmbrace Home Loans, Inc.

Revdex.com:
I have reviewed the response submitted by the business and have determined that the response does satisfy my issues and/or concerns in reference to complaint #[redacted]. I understand that by choosing to accept the business response that my complaint will be closed as resolved. 
Regards,
[redacted]

Revdex.com:I have reviewed the response submitted by the business and have determined that the response does not satisfy or resolve my issues and/or concerns in reference to complaint # [redacted]. Please add your rejection comments below. [If you are rejecting the business's response please enter your rejection comments here.]Embrace/[redacted] has deducted insurance payments from my mortgage autopayments from 2014-2016 although I have made payments directly to [redacted] for ASI Hazard and Citizens Wind insurance.Regards,[redacted]

Embrace has received notice of a rebuttal from the consumer.While it is certainly the decision of the consumer whether or not to proceed with the application, Embrace had immediately responded to her when the initial complaint was received, and it appeared that we were moving forward, until she advised us very recently that she wanted to terminate the application, and thanked the loan officer for his help.We are confident that she was receiving appropriate assistance with her application, and are sorry if she felt otherwise.[redacted], CCOEmbrace Home Loans

Revdex.com:
I have reviewed the response submitted by the business and have determined that the response does not satisfy or resolve my issues and/or concerns in reference to complaint # [redacted]. Please add your rejection comments below. 
The appraisal of my property came in $8 K below the original appraisal done in 2003 and $28 K less than the appraisal done in 2010.  The comps used were grossly inaccurate.  Embrace Home Loans has a history of "under appraising" property as can be documented in past Revdex.com complaints as well as complaints that can be found online.  I have submitted the 2003 & 2010 appraisals to the loan agent and have received NO communications back as to the status.  A refund of the appraisal fee is the only acceptable resolution. 
Regards,
[redacted]

Revdex.com:
I have reviewed the response submitted by the business and have determined that the response does not satisfy or resolve my issues and/or concerns in reference to complaint # [redacted]. . 
The information they just provided is not true at all.  I was advised the appraisal fee was refundable if the loan does not go through.  Our child support is not taxable income, they received the adoption support paperwork, showing it was for adoption support payments each month until the kids are 18 years old.  I am not sure where they are getting their information.  In chapter 4 of the VA pamphlet 26-7, it explains to creditors how to handle child support and adoption support payments as income, which it CLEARLY states it is usable income.  In fact, it is able to be "grossed up" because it is non taxable income.
Regards,
[redacted]

Embrace Home Loans, Inc. (Embrace) is in receipt of a notice of complaint from Ms. [redacted] regarding the appraisal performed in connection with her mortgage loan application with Embrace, suggesting that Embrace is being insincere in its practices.Embrace has been a lender of mortgage...

loans for more than 30 years; has been ranked among the Top 25 independent mortgage lenders in the nation; and regularly provides 15,000 mortgage loans to consumers annually.Given that the accuracy of a market value appraisal is so vital to the mortgage loan process, Embrace has for more than a decade engaged professional outside firms to manage the appraisal process completely.  In that process we are ensured that each appraisal will be performed by a professional and appropriately licensed appraiser, in accordance with procedures designed by the appraiser community, and also in accordance with federal regulations regarding the independence of their opinion. Embrace has no direct contact with the appraiser at anytime during the application process, and is prohibited from even implying a potential value for the subject property, in order to ensure the independence of the appraiser's opinion.Those same regulations require that any fee charged to the consumer be paid directly to the lender, and that it not exceed the actual amount charged by the appraiser for that service.  A review of the appraisal report does not suggest any obvious flaws in its construction, but we do recognize that the properties are located in a relatively rural community, which can lend itself to more challenging requirements.Embrace has offered Ms. [redacted] the opportunity to dispute the findings, by providing us with information that she feels was either 1) Not taken into consideration by the appraiser; or 2) misinterpreted during the inspection.  In response, Ms. [redacted] has provided us with information to be considered along those lines.  Embrace has submitted that information for consideration in order to determine if the appraiser feels that his initial report merits additional attention.However, Embrace is not in the Appraisal business, and it is not colluding with appraisers to cheat consumers out of an appraisal fee.  We gain absolutely no benefit from such a situation, and our business only succeeds when we are able to arrange a new mortgage loan for a consumer.We will pursue the dispute process for Ms. [redacted] but categorically reject her assertion that Embrace had any other intentions than to deliver to her a new mortgage loan.If you have any questions or concerns, please feel free to contact me at your convenience.[redacted], CCOEmbrace Home Loans, Inc.

Embrace is agreeable to the change, and will reimburse the cost of the Home Inspection as a good faith gesture.

Embrace Home Loans (Embrace) is in receipt of a notice of complaint from Ms. [redacted] relative to an appraisal report that was obtained in the process of her mortgage application with Embrace.  We took the opportunity to review the application file, including the appraisal report, and to...

speak with the Embrace staff that had been in contact with that file.After that investigation, we were unable to identify any particular flaws in the appraisal, but with Ms. [redacted]'s remarks in mind, we decided to engage a third party to conduct a formal review of the appraiser's report and conclusions.  Embrace contracted with a professional appraisal management firm to conduct that review, and a licensed appraiser was assigned to take a new look at the report.We have only recently (hence the delay in responding) received the report from that review, and its conclusion is that the original appraisal report stands on its own merit and should be accepted as is.Embrace has advised Ms. [redacted] of these findings, and that, given that the fee for the appraisal service is earned by the appraiser upon conclusion of the service; and that none of the fee is retained by Embrace, we find that the fee is not eligible for refund.If you have any questions or concerns, please feel free to contact me at your convenience. [redacted], CCOEmbrace Home Loans, Inc.

Embrace is offering 50% of the amount of the appraisal invoice as a refund.

Embrace Home Loans (Embrace) had been in receipt of this notice of complaint from Ms. [redacted] suggesting that she'd been having some difficulty making payments on her account, and that her attempts to contact Embrace about the payment had been unsuccessful.Embrace had recently arranged for a...

new servicing agent, [redacted] Mortgage, to be managing Ms. [redacted]'s file on our behalf, and we believe this may have led to some of the confusion she notes in her complaint.Embrace has reached out to Ms. [redacted] by phone and inquired of what information she was interested in receiving, and we have provided that to her.  We have subsequently inquired to confirm that she was satisfied with what was provided, but have not yet received a response.  We are, however, unaware of any problems or irregularities with her loan file.If you have any questions or concerns, please feel free to contact me at your convenience. [redacted], CCOEmbrace Home Loans, Inc.

Revdex.com:
I have reviewed the response submitted by the business and have determined that the response does not satisfy or resolve my issues and/or concerns in reference to complaint # [redacted]. Please add your rejection comments below. 
The response from Embrace Home Loans is not acceptable.  They even state themselves that [redacted] advised them that there was no problem with the easement as long as they did not harvest.  They are incorrect in stating that the USDA could harvest at any point.  Harvesting indicates financial gain.  They can only manage the property for conservational purposes and have not done so in 17 years.  There is no income to be earned from that property by the USDA.  It is poor business to have waited until closing to make this decision.  I stand by my request to have the appraisal fee returned.  I also know that the appraisal fees have been returned for other clients in some similar situations.
Regards,
[redacted]

Embrace Home Loans (Embrace) is in receipt of a notice of complaint from Mr. [redacted], and has taken the opportunity to review his application file in order to provide comprehensive response to his concerns.Mr. [redacted]'s complaint is due to his frustration with Embrace's loan process, which he...

suggests is inadequate to process loans thru the Veterans Administration, and in particular because he claims that Embrace is unfamiliar with how to acknowledge/calculate Child Support Income.  Prior to filing his complaint with the Revdex.com, Mr. [redacted] had written to Embrace directly insisting on a refund of his appraisal fee, which he claimed had been stolen from him, and instructing us to cancel his loan application.Mr. [redacted]'s application had been received in mid March, at which time he had agreed to an appraisal of his home, and provided payment for that service.  Prior to the appraisal being performed however, he advised the loan officer that he felt the interest rate was too high, and had a better offer from another source.  The loan officer offered to refund the appraisal fee at that time and withdraw his application, but Mr. [redacted] instead chose to pursue the application with Embrace, and an appraisal of the property was requested.Though the appraisal report however found the home to be worth less than had been expected, there was an option to consider an alternate request, and Embrace received supporting documentation from Mr. [redacted].  Upon review however, it was discovered that the documents didn't support the level of income that had been suggested.  Part of that discrepancy was due to income he was claiming as Adoption Support income.  This is notable because it is different than Child Support, which is formally recognized as taxable income.  Embrace reached out to VA directly for help with interpreting this issue, and was advised that the income was not eligible for consideration.This led to the application being denied, at which point Mr. [redacted] demanded his appraisal fee be returned and his application cancelled.Embrace discloses to every applicant for credit that an appraisal fee is not refundable after the service has been provided, as it was in Mr. [redacted]'s case.In addition, his claims that Embrace is not qualified to process a VA application are without merit.  Embrace has sought and received Non Supervised Automatic Approval Status from the VA, and has full authority from that agency to participate in VA lending, which it does not provide to unqualified lenders.Still, in a good faith gesture, the loan officer in question, Mr. [redacted], agreed to issue a refund of Mr. [redacted]'s appraisal fee, and had advised him that he had done so prior to the filing of this complaint.If you have any questions or concerns, please feel free to contact me at your convenience. [redacted], CCOEmbrace Home Loans, Inc.

50%

Revdex.com:
I have reviewed the response submitted by the business and have determined that the response does satisfy my issues and/or concerns in reference to complaint #[redacted]. I understand that by choosing to accept the business response that my complaint will be closed as resolved. 
Regards,
[redacted]

Revdex.com:
Good morning,As of today I have not received the refund of the appraisal fee Embraced Home Loan promised me in reply to my Revdex.com complaint.  Please reissue the complaint to request the refund again.Thank you.[redacted]
Regards,
[redacted]

Embrace Home Loans is in receipt of a notice of complaint from Mr. [redacted], noting that a fee he had paid for an appraisal of his property remained outstanding - that he had cancelled the service, and failed to complete the application process.  We have reviewed our file and confirmed...

that the application has been closed, and that a refund of the amount he had paid for an appraisal fee has been refunded to him. If you have any questions or concerns, please feel free to call at your convenience. [redacted], CCOEMbrace Home Loans, Inc.

Agreed.  Embrace has collected monthly installments of Escrow for the purpose of paying the Homeowners/Hazard Insurance policy tied to the loan.  Embrace is responsible for this activity in accordance with the terms of the loan.  Ms. [redacted] has provide certain information to us  for review, and the payment to the hazard insurance policy matches the timing and amount of the payment made by Embrace in September of 2015.

Embrace Home Loans (Embrace) is in receipt of a notice of complaint from Mr. [redacted] regarding their recent application with us, and we have reviewed the file to determine the details related to his concerns.Our records show that an application was received on or about December 1, 2016, and that...

loan disclosures were delivered to them the following day.  On December 5 Embrace had received a notice that the consumer intended to proceed with the application, and on that date the consumers provided payment for an appraisal of their property.  An appraisal was ordered and an inspection of the property performed on or about December 8.In discussion between the Loan Officer and the consumer at point of application, it was suggested to Embrace that a previous credit delinquency had been related to a bankruptcy, which appeared to meet loan qualification guidelines, but upon receipt of the supporting documentation, it became clear that they were separate issues, and that the [redacted]s did not qualify for the loan they had requested.  The supporting documentation, however, was not received until about December 16.It appears that the assumptions regarding their creditworthiness that suggested that their request might be approved was sound at that time, and that the ordering of the appraisal was a logical step at that time.Still, given that the loan parameters relative to these matters can be confusing, Embrace is prepared to issue a partial refund of the appraisal fee as a good faith gesture if they are willing to accept it.If you have any questions or concerns, please feel free to contact me at your convenience.[redacted], CCO / Embrace Home Loans, inc.