Prospect Mortgage Mortgage Complaint

Prospect Mortgage Mortgage department,

Conventional fixed mortgage Application, originator, mortgage broker Florida

The Complainant engaged a lender, Prospect Mortgage, - ( Prospect '' ), to obtain financing on the purchase of a residence. The purpose of this complaint is to notify the CFPB that Prospect has refused to timely fund the Complainant 's loan pursuant to a Letter of Commitment. As a result, and as detailed below, Complainant is likely to incur significant financial damage. Complainant has reason to believe that Prospect does not have sufficient funds available to fund its loan commitments and/or engages in a practice of issuing more loan commitments than it is able to process. The Complainant engaged Prospect Mortgage, - - -, - -, - -, - -, NMLS ID # -, upon entering into a purchase agreement for a residence on or about - -, 2015. The Complainant hired Prospect based on their representations that they are - of the nation 's leading residential lenders and are backed by $5.00 - in assets. At Prospect,


provide certain financing on or before - -, 2015. The Letter of Commitment is executed by - -. Despite the Complainant meeting all conditions under the Letter of Commitment, Prospect Mortgage is refusing to fund the loan by - -, 2015, because, according to - -, they are too bogged down. '' Prospect informed the Complainant that they are unlikely to be able to fund the loan until - -, 2015. The purchase contract for the property has a closing date of on or before - -, 2015. Pursuant to the terms of the contract, the Complainant is obligated to close once he obtains a loan commitment. The contract further provides that the Complainant will lose his deposit funds of $20000.00 in the event that he is unable to close by - -. Complainant will also incur the cost and inconvenience of having to locate and move into a rental property. As of the date of this complaint, the sellers have not agreed to extend the closing date. Complainant has informed Prospect of their legal obligation to provide funding pursuant to the terms of their loan commitment. Prospect has refused to acknowledge that their loan commitment obligates them to provide funding. More specifically, Prospect seems to be misinformed that they are permitted to delay funding of loans based on their own underwriting and investor delays. Prospect has admitted that they are not always able to timely fund their loans.