ComplaintsforEmbrace Home Loans, Inc.

• Initial Complaint

  03/07/2024

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  We were told by the loan originator, there would be NO Problem processing loan and getting it to closing.After paying for a Home Appraisal, the loan originator started claiming they were running into issues. I have bought other properties in the past. This is the only lender I have dealt with tgat charges the Appraisal Fee Up front and if loan is not approved, through no fault of my own, we are out the money laid out for Appraisal.

  

  Business response

  03/09/2024

  Embrace Home Loans (Embrace) is in receipt of a notice of consumer complaint, received from ******************, and has taken the opportunity to review the application file in question.

  ****************** has noted that his loan officer suggested that the application appeared to be eligible for approval, but that would have been based on his personal creditworthiness only.  The acceptability of the subject property could only be determined through the routine procedures required for that purpose.

  The first such procedure would be to obtain an appraisal report from a qualified independent appraiser, for which the fee required is typically paid at point of application.  Embrace engages third parties to arrange for appraisal reports, the fee for which will have been earned by the appraiser when they have completed the assignment.  No part of the fee paid by a consumer is retained by Embrace, but rather that fee is delivered to the appraiser upon their delivery of the completed appraisal report.

  Second, and particular to the eligibility requirements for a Condominium project, is the comprehensive due diligence necessary to determine that the Project satisfies the requirements established by conventional mortgage loan guidelines.  In order for a condominium unit to be eligible for financing, it must satisfy these requirements, and that cannot be determined until the lender has received all of the necessary confirmations from the Condo Association.

  In ********************** case, there appears to have been some delay in our receipt of information relative to the condo's eligibility, and when that information was received it was found to include several factors that did not satisfy those requirements.   The condominium, therefore, was deemed to be ineligible for financing for that reason.

  If you have any questions or concerns, please feel free to contact me at your convenience.

  Thank you.

  Customer response

  03/09/2024

  Better Business Bureau: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 # ********. Please add your rejection comments below; if you do not provide any details, your complaint will be closed as Answered. 

  [You must provide details of why you are not satisfied with this resolution.  If you do not enter a reason for your rejection, your complaint will be closed as Answered.]
  
  Businesses and Customers should be civil, courteous and polite in their responses to complaints. It is important to remain professional and productive when participating in the BBB complaint process.
  
  FAQ
  
  Regards,

  *****

  The Loan Originator should have known that the Condo Complex did not fit the criteria of being approved with a 10% downpayment.

  I was strung along, made to think there woukd be no problem getting it approved. I was told by loan originator, getting denied had nothing to do with My Credit Worthiness. The Unit Did Not Fall Under Their Criteria which should have been said from the start instead of wasting time and Money.

  On top of that, I have bought properties previously, deali g with other banks who paid the Appraisal Fee and then was charged under closing costs.

   

   

  

  Business response

  03/12/2024

  Embrace was not able to come to a conclusion in this matter as suggested by the consumer.

  It is correct in stating that the applicant's personal creditworthiness characteristics were deemed to be satisfactory.  The subject property, on the other hand, was not.

  Had the loan officer been made aware that the subject property had recently been converted from a CondoHotel to a Condominium, or that the entire complex is closed and unavailable for use during the winter months, then he would have been able to conclude that there were significant obstacles to approval for the loan program requested,  This information was not, however, mentioned at point of application, or revealed in the terms of the contract.

  Efforts to obtain the necessary documentation from the *********************** to qualify the Condo Project as acceptable to FNMA were delayed due to an inability to make contact with the *** officials, and when they finally did provide such information it did not comply with ************ standard requirements.

  It was only after significant research that Embrace was able to learn the factors related to this subject property that caused it to be deemed ineligible for financing, and not at point of application.

  We do understand the disappointment of the consumer in the outcome, and are sorry that the application could not be approved.  However the manner in which events unfolded relative to this application could not have been concluded earlier in the process, as suggested.

  If you have any questions or concerns, please feel free to contact us at your convenience.

   

  Thank you,

  *****************************, Consumer Ombudsman

  Customer response

  03/12/2024

  Better Business Bureau: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 # ********. Please add your rejection comments below; if you do not provide any details, your complaint will be closed as Answered. 

  In Response to the lie that was told, the broker handling the mortgage was aware that it was a condotel. If not in an Email, it was definitely mentioned that the building was in the middle of transitioning to full condominium, but was previously a condotel.
  
  Also the person answering claims the board did not respond quickly to condo questionnaire. Any time Myself or Realtor posed a question to board, we were answered sometimes within hours, but definitely within a day. Embrace seems to be the only people no able to get information they were looking for.
  
  These statements are outlandish and in no way should a Fee be charged for a deal that had no chance of being approved. Tge broker promised 10% down would be fine!
  
  I would like the Fee returned, as I am filing a dispute with the credit card company as well. Another bank tried to assume transfer of tge Appraisal to no avail and if I paid for it, it should have been of my property, not Embrace's.
  
  ***********************;
  

  
  

• Initial Complaint

  12/13/2023

  Complaint Type:

  Sales and Advertising Issues

  Status:

  Answered

  More info

  Embrace Home Loans has been absolutely horrible to work with. They strung us along for weeks (we are the seller of a home, the buyer was a client of Embrace). The lender working with our buyer, and subsequently us, lied to us consistently, stating things were taken care of when they weren't, coming up with excuses as to why we couldn't close. He yelled at us for asking questions and expecting answers. They weren't satisfied with any paperwork that was given to them from the buyer, even though it had exactly what they were asking for; constantly coming up with more reasons to keep putting us off. Buying/selling a home is one of the most stressful experiences out there, and Embrace increased that stress by 100 times. They finally denied their loan after weeks of "we are working on it," even after our buyers had received approval and the CD had been sent out. We spoke with upper management, who were not helpful, and made the same excuses *************** did. Absolutely horrible experience that has caused heartache, stress, frustration, and anger, when none of that was necessary.

  

  Business response

  12/13/2023

  Embrace Home Loans (Embrace) is in receipt of a notice of Complaint from ******************, however it is unable to provide a response to her allegations at this time.

  ****************** suggests that she is, or represents the seller of residential real estate for which Embrace had received an application for credit from the proposed purchaser, and that due to it's substandard service to that applicant by Embrace the parties were subjected to significant stress and anxiety.

  The complaint, however, identifies neither the name of the applicant in this situation, nor the address of the subject property, which would have likely allowed us to identify the specific file in question.  The information provided however does not allow us to review the application to consider her concerns.

  It is notable that, as a mortgage lender, Embrace is responsible to provide services to the proposed borrower and purchaser in such situations.  It does not have direct responsibilities to the seller in any such situation, and may actually be prohibited from considering the needs of the seller if they might be contrary to the needs of the buyer.

  Still, we would be happy to review this file to confirm the accuracy of our actions if we receive information necessary to identify the application in question.

  If you have any questions or concerns, please feel free to contact me at your convenience.

   

  *****************************, Consumer Ombudsman

  Embrace Home Loans

  **************  xt 3229

   

• Initial Complaint

  07/20/2022

  Complaint Type:

  Order Issues

  Status:

  Answered

  More info

  My mother, a recently widowed, elderly woman decided to refinance her home in order to gain access to some of the equity in her home to do some much needed home renovations. She asked me to be her liaison and communicate with the mortgage company on her behalf. Her loan was already established with Embrace Home Loans; therefore, we found it easier to refinance with them. **************************** was assigned as our loan officer and ******************* was assigned as the mortgage loan processor. Both individuals were very responsive and helpful of course, prior to closing the loan. My mother nor I are mortgage experts, this is something that she felt she needed to do in order to have some relief as a recently widowed and elderly woman so we entrusted ourselves. After the closing, unfortunately, we noticed that a total of $2,567.05 were taken from the overall total amount of proceeds due to her and scheduled to be paid for Taxes owed to the 'Town of ***********************.' My mother's property is located in the town of ***********, ** and she has never owned nor has she ever stepped foot in the *****************, **. Additionally, according to the loan documents, taxes were taken to pay off the existing taxes and taxes were collected for escrow. She has also received bills for 2 months for taxes that were supposed to be paid as part of the closing. On multiple occasions we tried to contact both ****** and ***** for a simple explanation of what this charge is and why it would be listed under the 'Miscellaneous' section of the closing documents. No response from either one of them to date. Again, my mother is widowed, she is elderly, every cent is worth a million dollars to her; and where ****** and ***************** not care because they've clearly succeeded in getting their closing done and getting whatever bonus or commission they may receive, in my mother's world this is all she has. All we're looking for is an explanation. If this is an error, we'd like the $2,567.05 to be reimbursed.

  

  Business response

  07/26/2022

  Embrace Home Loans is in receipt of a notice of complaint from ********** regarding a mortgage loan that was received by her mother.  In particular, it was indicated that there had been uncertainty if the real estate tax payments to be disbursed from the loan proceeds were not sent to the wrong tax assessor's office.  The Closing Disclosure showed that the payee for those taxes would have been the *****************, **, when in fact her mother lives, and taxes are due in ***********, **.

  Upon review, and consultation with the settlement agent and servicing staff we are able to confirm that the payment for taxes was sent to the correct assessor's office in ***********, and that only the designation on the Closing Disclosure had been in error.

  Further, a suggestion that taxes remained unpaid was incorrect.  In reality, the servicer had made the appropriate payments upon receipt of the next tax **** due.

  Embrace has been in touch with the complainant and advised her of the status of all factors.

   

  If you have any questions or concerns, please feel free to contact me at your convenience.

   

  *****************************, VP/CCO
  Embrace Home Loans, Inc.

• Initial Complaint

  12/28/2021

  Complaint Type:

  Service or Repair Issues

  Status:

  Resolved

  More info

  I am writing this complaint due to that fact of prior to my closing date that was originally set for October 29th 2021 I was given a closing cost of $7,000. I confirmed that this was in fact the correct amount to bring with me with lender and was told yes. My closing date got canceled an hour before my closing because of an underwriter apparently needing another water test in which they ended up not needing after all. Within the following week my closing was rescheduled and the lender reached out to me saying that they had made an error in my closing costs and that my closing costs were now $10,518.29. This is a very big difference from the day of my scheduled closing to the next week in an error made by embrace home loans in which I believe they should be responsible for. I have all emails regarding this situation if needed. After expressing how upset I was to lender for this big error I was told I should be Greatful that everyone was working to help me, I am still upset to this day.

  

  Business response

  12/29/2021

   

  Embrace Home Loans (Embrace) is in receipt of a notice of consumer complaint received at the Better Business Bureau from ****************, and has taken the opportunity to review the loan file and reach an understanding of what did happen relative to the observations expressed in the complaint notice.

  First, and foremost, Embrace is pleased to have been selected by **************** to assist her in the effort of obtaining financing for her home purchase.  We are disappointed that she has felt underserved in that process, and hope that her opinion of Embrace might improve as we continue to service her loan.

  In regard to the observations made in the complaint narrative, there are basically two distinct concerns.  First, is that the loan closing was delayed, described as unnecessarily, due to an issue with the water systems at the subject property.  Our review confirms that the originally intended closing date was missed because Embrace had not been able to conclude that the water systems at the property had passed the tests for safety as proposed by the ****************.  There appears to have been a clause in the Purchase Agreement to include confirmation of the adequacy of the water systems as a requirement, and a responsibility of the Seller.  Efforts to obtain information to reach this conclusion, however, had not been successful at that time.  Our research had shown that ******* recommends three separate tests of water purity to confirm acceptability, but of those only one set of test results had been received.  Embrace took it upon itself to engage third parties for the purpose of resolving this issue, and absorbed the cost of that effort in the amount of more than $600, which was not passed along to the borrower.  Ultimately, Embrace agreed to accept that limited response as satisfactory only when **************** provided a written statement to suggest that she was satisfied with that effort to meet the requirements of the Purchase Agreement.

  The second concern was related to the Closing Costs applicable to the loan, which are claimed in the complaint to have inexplicably increased from $7000 to more than $10,000 within only a few days of closing.  Embrace confirms that her observations on this point are technically correct; that we had mistakenly produced an initial Closing Disclosure that had neglected to include a certain required fee into the borrower's closing costs, and that shortly prior to closing that error was discovered.

  However, the full set of circumstances applicable to this point are important to understand.  First, the Purchase Agreement included the unusual clause of assessing the *********** Commissions, normally a responsibility of the Seller, instead to the Buyer.  Therefore, **************** would be responsible for that factor of the closing costs, according to the contract to which she had agreed with the Seller.  Indeed, when Embrace initially disclosed the terms of the proposed loan to her on the Loan Estimate, that fee was included in her closing costs, which were estimated to be in the vicinity of $10,000.  That amount was subsequently reconfirmed on a revised Loan Estimate several weeks later.  However, when Embrace prepared its preliminary Closing Disclosure for the borrower, we referred to amounts provided to us by the Settlement Agent, who had mistakenly assumed that the *********** Commission fee would be the responsibility of the Seller, as it is in most such contracts.  Embrace failed to recognize the inconsistency, nor was it brought to our attention by any of the parties applicable to the transaction.  As a result, the loan ******** ******************* did indeed suggest to **************** that she should be prepared to have funds of $7000 available to cover closing costs.  It was only subsequent to that conversation that we became aware that the ** Commission fee had been unfortunately miscatagorized, and was indeed the responsibility of the Buyer, ****************.

  While Embrace accepts full responsibility for its failure to recognize the discrepancy between the Closing Costs estimated on the Loan Estimate, and those presented to us for inclusion on the Closing Disclosure, we feel it is important to note that, in the end, the closing costs were almost exactly what we had estimated on the Loan Estimate, and that it was only the unusual terms applicable to this loan assigning the responsibility for the entire *********** Commission to the Buyer, that led to the confusion, both with the Settlement Agent and Embrace.

  Still, Embrace intentionally focuses its primary intention of providing exceptional customer service, and while we understand that not all loans will go smoothly from start to finish, we believe that we should be able to present our best efforts in every circumstance.  Toward that end, and as a good faith gesture, Embrace is prepared to offer a $2000 rebate to ****************, to represent a partial accommodation toward the difference in the closing costs that were disclosed relative to her loan, if she is accepting of that offer.

  If you have any questions or concerns, please do not hesitate to contact us at your convenience.

   

  ****************************** Chief Compliance Officer

  Embrace Home Loans, Inc.

  ************************************* 

  Customer response

  12/29/2021

  [A default letter is provided here which indicates your acceptance of the business's response.  If you wish, you may update it before sending it.]
  
  Better Business Bureau:
  
  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 #********. I understand that by choosing to accept the business response that my complaint will be closed as resolved. 
  
  Regards,
  
  *************************

• Initial Complaint

  10/12/2021

  Complaint Type:

  Product Issues

  Status:

  Resolved

  More info

  Five days before settlement on a property that I want to buy with Embrace Home Loans sponsoring the mortgage, I was told that they could not do the mortgage because the building was not on a secure foundation and I needed to use another mtg company. The new company asked for monies to do an appraisal that I had paid using my credit card to Embrace Home Loans, that unknown to me, was never done. I wrote to the Embrace Agent at the **********, ** branch that I had been dealing with enclosing an auto-receipt from Embrace, a credit card statement showing the payment that I made for the appraisal and emails stating that Embrace did not do the appraisal. I ask what happened to this money and have yet received no response from them

  

  Business response

  10/13/2021

  Embrace Home Loans (Embrace) is in receipt of a notice of consumer complaint from Ms. ***** regarding her recent application for credit with us, and we have taken the opportunity to review the application file in order to submit a comprehensive response to her concerns.

  Our review has confirmed most of the assertions Ms. ***** has submitted.  She did apply for a mortgage loan with Embrace, and in that process, she did pay to Embrace a fee for an appraisal of the property she was intending to purchase.  The amount of the fee paid was $520.00.  An appraisal was ordered, and an appraiser went to the property to conduct that appraisal on or about August 30, 2021.  The appraiser went to the property, but immediately identified that the subject was a manufactured home not secured to a fixed foundation.

  In order for a Manufactured Home to be considered eligible for Residential Mortgage Financing, it must be secured to a ***************** with a visible license/tag issued by the Department of HUD.  It must also be considered as REAL PROPERTY, and not PERSONAL PROPERTY by local government standards.  Given that the subject was not attached to a fixed foundation, and that it is considered to be Personal Property by the local jurisdiction, the Appraiser understood that the property would not qualify for Mortgage Financing.

  The appraiser took some pictures of the exterior of the property to demonstrate that he had been to the property, but did not complete the appraisal assignment, perhaps after discussing with Embrace.  For the work he did complete, we received an invoice of $175.00, which we paid to the appraiser for those services.  

  It does appear that the accounting department had been waiting for instructions about when to address the remainder of that fee, $345, and direction was provided this morning to issue a refund in that amount to the credit card that had been used for the payment.

  We do apologize for any delay in process for this refund.  If you have any questions or concerns, please do not hesitate to reach out to me at your convenience.

   

  Thank you.

   

  *****************************, VP/CCO.

   

  Customer response

  10/14/2021

  [A default letter is provided here which indicates your acceptance of the business's response.  If you wish, you may update it before sending it.]
  
  Better Business Bureau:
  
  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 #********. I understand that by choosing to accept the business response that my complaint will be closed as resolved. 
  
  Regards,
  
  **** P****

• Initial Complaint

  08/19/2021

  Complaint Type:

  Order Issues

  Status:

  Answered

  More info

  I refinanced with Embrace Homeloans 6 weeks ago. The premises for refinancing was to change to a 15-year mortgage, and our loan officer sold me on the idea to set up the payments for bi-weekly, which would help us to pay off our house in ************************************************** refinance.Once all the papers were signed, we received paperwork from Rushmore loan management services telling us our loan has been sold to them. Upon further investigation, it became clear they do not offer bi-weekly mortgage payment options at all, and that I would have no other choice but to do monthly payments. I regret doing a refinance with Embrace. I was sold on a great concept of a bi-weekly, quick pay-off plan, and now I'm stuck in a mortgage that doesn't offer that at all. If Embrace is half the type of company that they insist they are, they should be able to honor the bi-weekly payment plan that I was sold on.

  

  Business response

  08/31/2021

  Embrace Home Loans (Embrace) is in receipt of a notice of complaint from **************, and has taken the opportunity to review her loan file for the purpose of responding to, and finding a resolution of her concerns.  It appears that she did, indeed, discuss the potential of making bi weekly payments during the application process, and was advised that it would be possible for her to make her payments in that fashion, which is possible.  However, the loan she received was not structured on a bi weekly payment basis, and only calls for a monthly payment.  Indeed, the loan application was always disclosed to her as calling for a single monthly payment.

  The servicing of the loan was assigned to Rushmore Mortgage Services, who acts as Embrace's servicing agent, and while Rushmore will accept partial, bi-weekly payments, they will not arrange for an automatic withdrawal of payments in that manner.  

  We have spoken with ************** in order to determine exactly what her expectations might be, and in doing so have been able to identify several concerns she has about managing the loan.  We have agreed to revisit the file for the purpose of determining what options may be available to her at this time, and believe that we can present her with options that can achieve the desired ends.

  Please feel free to contact us if you have any questions or concerns.

   

  *****************************, VP/CCO

  Embrace Home Loans, Inc.

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