Pentagon FCU Mortgage Complaint

Pentagon FCU Mortgage department,

Conventional adjustable mortgage (ARM) Application, originator, mortgage broker Texas

I received pre-qualification for a mortgage from Pentagon Federal Credit Union ( PenFed ), and I used this information to put a condominium under contract. Once I received the contract, I sent it to PenFed. - of the PenFed mortgage consultants did not understand the difference between 90 % occupied and 90 % owner occupied and slowed the initial process by 3 days. Once this was resolved, she confirmed the loan could be completed. I committed to the contract with the sellers and moved forward with PenFed. They asked for a number of documents ( pay stubs, bank statements, etc. ), and I provided them all. We ordered an inspection be done on the house, and I paid earnest money to the sellers. PenFed worked with my realtor and had an inspection done on the house. From the beginning, it was clear that the property under contract was a condo and that I was putting 10 % down. After all the documentation had been submitted and the appraisal company had already visited the property, PenFed calls me to tell me that they made a mistake and they do not write mortgages for condos with over 80 % LTV. This is with about 20 days left to the contractual close date, after I paid earnest money that can not be refunded, and after I committed to a roommate moving into the condo. At least - people had viewed this loan and not brought up the LTV issue with condos, and all knew that I was purchasing a condo with 10 % down payment. The negligence and failure to notice this most basic of criteria in their lending standards could potentially stop me from purchasing the house and cost me all my earnest money. This could also force me to lose a roommate who would be renting a bedroom out because he could now be forced beyond his current end lease date.