I want to share my experience with The Mortgage Shop. I have closed three loans with The Mortgage Shop. Those were good experiences. But the real test of this company's character came with the most recent loan I tried to close with them.First, I thought the loan rate was locked, and it was not. The loan officer had forgotten to lock the rate. Second, I expressed concern over the appraisal rental analysis not being high enough and was told, "We are at a 1.22% DSCR ratio so we are good.”That was on Dec. 5. My deadline to back out of my real estate transaction and get my earnest money back was Dec. 12. On Dec. 23, my loan officer called me and said the DSCR ratio was below 1%. When I asked why this was caught earlier, she responded, "Based on the timelines you provided, we had a team fail including me... I had too many rush loans come in during that week the insurance and appraisal came in."They admitted that the problem was lack of staffing and being overworked. But at this point, I'm past the deadline to back out, and to do so would mean losing about $6,000 in earnest money. So I began frantically looking for a new lender. I found one, who was able to grant an exception for the DSCR ratio and close the loan.I contacted The Mortgage Shop after the fact with a full history of what had transpired and asked for some compensation. Why? Because if had I been informed of the issue prior to Dec. 12, I would have been able to back out of the transaction and walk away with my money. And although I'm grateful to have found another lender to get it done, it cost me more money in points, a higher interest rate because of the current rate was higher than previous, and I had to buy another appraisal for $750.The response I received from one of the founders of the company states: "We are not able to refund any amounts at this time as the time of quality control has passed.... I am sorry you feel that way, but there is nothing we can do at this point on this file."But here's the thing -- they were aware the entire time. They admitted their failure, yet are electing to do nothing to make it right. They offered to give me a credit on a future loan. But based on my experience with upper management, there will be no future loans with The Mortgage Shop. They are happy to earn thousands of dollars in commission on the loans I have closed with them, but when one has a significant failure on their part, they just say there's nothing they can do.What's most disappointing is their overall lack of accountability. I can totally understand they were overworked and understaffed, and as a result, mistakes were made. I'm not mad about that. I'm upset that they aren't making it right. As an owner of several short-term rental properties, when my guests have an issue at one of my properties, I do everything I can to make it right. Yet when The Mortgage Shop openly admits that my loan fell through the cracks due to staffing issues, I was given misinformation regarding my rental analysis, and as a result missed my window to back out of the deal — not even an apology, at least not until I wrote them and asked for one.As a result, despite my previous loan with The Mortgage Shop, I do not recommend them. If you're looking for a great lender who can get you to the finish line, including getting creative if there's any problem with your loan, contact James Mahieu with Northpointe Bank. He is licensed in all 50 states.

Galveston, Texas

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