Loan Simple, Inc.

I think there is some confusion as to whom this complaint should be filed against.Loan Simple is not a loan servicing companyThis means we do not purchase loans of any kind from other lendersWe are not set up to do so nor have we ever been set up to facilitate this type of businessWe
DID NOT purchase the FHA Loan that *** and *** *** took out through ***We don't have anything to do with any MIP that was collected upfront on that *** loan and we certainly play no role in issuing refunds from HUD*** *** was not licensed or affiliated with Loan Simple in any way when this original loan with *** was originated and closed.Any complaints about MIP and refunds on a loan originated and closed at *** should be filed against ***.Loan Simple was not involved in the FHA Loan that *** and *** *** have brought into question

We at Loan Simple believe that [redacted] must be mistaking Loan Simple for another mortgage company. We do show that [redacted] inquired about a mortgage but Loan Simple never received any kind of required qualifying documentation that would be needed to issue any form of Pre-Qualification....

In order for Loan Simple to issue a Pre-Qualification our Underwriters would require income and asset documentation in addition to a recent credit bureau on all applicants. We did not receive any documentation of any kind from [redacted].Anyone applying for a loan would be required to meet the qualifications for the loan in question. This includes providing documentation of the ability to repay the loan. To substantiate the Borrower(s) ability to meet the obligations of the loan we review income and asset documentation. This includes but is not limited to pay stubs, W-2, Tax Returns, Bank Statements, or investment account statements. We did not receive any documentation from [redacted] and could not have issued any kind of pre-qualification.Due to the lack of any documentation from [redacted] we believe there must be an error in this complaint being filed against Loan Simple.We did not issue a pre-qualification to [redacted].Thanks for your time and please let us know what we can do to resolve this issue.

Initial Business Response /* (1000, 8, 2015/11/10) */
As Mr. [redacted] has mentioned, [redacted] is a new employee to Loan Simple. Mr. [redacted]'s past experience working with Mr. [redacted] at another company is not something we can comment on. It is also information that should not be combined with a...

complaint against Loan Simple. With that being said, we have not received any other complaints regarding Mr. [redacted] in the very short time he's been with Loan Simple. However, we appreciate the feedback and will be certain to implement any changes we feel could prevent any further confusion or frustration.
In regards to Mr. [redacted]'s loan application and experience with Loan Simple, it appears that Mr. [redacted] had many challenges that were preventing him from gaining loan approval. Based upon the details of the complaint description it appears that Mr. [redacted]'s difficulty gaining loan approval predates working with Loan Simple.
Please note, Mr. [redacted] signed a formal loan application whereby he certified that all the information submitted to Loan Simple was true and accurate on the application. As a lender we rely on the details of the initial loan application Mr. [redacted] certified, to determine if the loan is likely to gain loan approval before proceeding. The application is also run through Desktop Underwriter (DU), which grants a preliminary loan approval based upon VA's specific lending guidelines.
However, when the file made it to the validation stage of the process, where a VA certified mortgage underwriter reviews the borrower's federal income tax return and entire credit profile, the underwriter discovered many critical inaccuracies within Mr. [redacted]'s loan application. The loan could no longer gain approval through the automated system, and the borrower's excessively high debt ratio exceeded manual underwriting guidelines.

Mr. [redacted]'s annual income turned out to be considerably lower than stated on the signed loan application. This pushed his debt ratios out of qualifying ratios and this was communicated to Mr. [redacted].
As a result of Mr. [redacted]'s difficulty qualifying, Mr. [redacted] was looking for additional ways to help him qualify. VA does allow some leniency for higher debt ratios, when the borrower can demonstrate a certain amount of residual income. (Residual income is excess income available after the Veteran pays all monthly expenses). The VA residual income calculation considers the number of household dependents, and fewer dependents can make it easier to meet the residual income requirements. It appears there was a large miscommunication between Mr. [redacted] and Mr. [redacted], where they were trying to determine if Mr. [redacted]'s daughter would continue to be a dependent. Ordinarily, it wouldn't be open for discussion, but Mr. [redacted] was moving to a new state and his daughter was not moving with him.
Unfortunately, this did not work out to be a solution that was put into place.
In reading the file notes and looking at this loans progression, it appears that Mr. [redacted] tried incredibly hard to help Mr. [redacted] gain loan approval, which inevitably caused delays as he tried all the different solutions. Sometimes that effort works against the loan officer because it requires a lot of work from everyone, and when it doesn't work out the loan applicant can often times feel as though they were misinformed or mislead. The end result was not a loan approval, and I understand why Mr. [redacted] may have perceived the process negatively. Especially, since he had issues with a prior lender well before Loan Simple received the loan application.
I suspect that because Mr. [redacted] was the common denominator with both lenders that did not grant him loan approval, Mr. [redacted] felt he was the problem. But the truth was the common denominator preventing Mr. [redacted]'s loan approval with two separate lenders was in fact Mr. [redacted]'s financial position in terms of qualifying within the VA Debt Ratio Guidelines both lenders have to adhere to.
There is nothing in Mr. [redacted]'s file or the communication that we reviewed that substantiates a complaint against Loan Simple. We followed lending guidelines and provided communication and updates through multiple chains of communication.
I'm sorry we could not approve his request for mortgage financing and wish him the best finding a lender that can help him.
Loan Simple does not profit in any way when we are unable to close a loan. In fact, it costs us a sizeable amount of money to underwrite a loan. When that loan doesn't close we end up in a deficit.
We work very hard to avoid these losses and always look for ways to make loans work. We are very proud of the number of VA loans that we have approved in the last two decades. Our founder, [redacted],is a two tour Vietnam Veteran and we've always worked hard for veterans.
Unfortunately, Mr.[redacted]'s loan simply did not meet the guidelines set forth regarding debt ratio through VA.