The Money Source Inc. | Complaints

NewRez LLC | Complaints | Better Business Bureau Profile

Dear
*** *******:

I represent NewRez LLC (“NewRez”), which
is in receipt of your complaint regarding your loan application for a refinance
secured by the property located at **** ********* **** ****** APT
***, Fort Lauderdale, FL ***** alleging poor customer, improper denial of your loan,
and a reimbursement of your appraisal fee.   Please be assured that NewRez reviews all consumer complaints carefully
and makes every effort to reach a fair and amicable resolution. After reviewing
your complaint and investigating the surrounding circumstances, I offer the
following response:

According to our records, you applied for
a refinance loan with NewRez on or around March 12, 2020. At that time, NewRez
began working diligently on your loan. Our records indicate that your loan was
handled timely (subject to underwriting conditions) and denies all allegations
of wrongdoing.  During the normal process
of underwriting review of your loan, the NewRez underwriting department
requested additional verification of residency due to potential discrepancies
found on documents sent in as part of your application (as this loan was
specifically for an owner-occupied property).  NewRez acknowledges that it received screenshots of the required
documents, but it did not receive full copies of the complete document
necessary to satisfy underwriting standards for your desired loan product. Additionally,
the NewRez underwriting department determined that, due to a change in
circumstances, the income stated on your loan application was not supported by
the income documents that you submitted.  A revised DTI calculated based on present earnings rendered you
ineligible for this loan. Due to these occupancy concerns and excessive
obligations in relation to income, NewRez ultimately determined that this loan
did not meet NewRez’s underwriting standards for your chosen loan product.  Your loan was denied on May 15, 2020, and an
Adverse Action Notice was sent to you by NewRez on the same date explaining the
reason for the loan’s denial.

Read about:   Price-to-Rent Ratio Definition

NewRez, like all other residential
mortgage lenders, requires that an appraisal be performed by a state certified
or licensed appraiser for all real estate related transactions that are secured
by real property.  Furthermore, “it shall
be unlawful, in extending credit or in providing any services for a consumer
credit transaction secured by the principal dwelling of the consumer, to engage
in any act or practice that violates appraisal independence …”  15 U.S. Code § 1639e.  During the course of
your transaction, your loan officer explained that an appraisal would be a
necessary cost of proceeding with the application to confirm the value of the
Property, at which point you agreed to proceed. An appraisal was conducted by a
licensed appraiser on or around May 1, 2020 that determined the market value of
the Property.  NewRez is prohibited from
exerting any influence on the appraiser to alter or change that
determination.  As the contracted
appraisal was performed, the payment was earned.

Although NewRez made every effort to
assist you with your refinancing needs, it was unfortunately unable to do so
because of the above reasons.  NewRez
firmly believes your loan application was handled professionally and in
accordance with all applicable laws, regulations, and industry guidelines.  If I can be of any further assistance to you,
please do not hesitate to contact me at [email protected]

Sincerely,
Brian
L*****, Esq.
Staff Attorney

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