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Business Profile

Mortgage Lenders

Norcom Mortgage & Insurance

This business is NOT BBB Accredited.

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Complaints

This profile includes complaints for Norcom Mortgage & Insurance's headquarters and its corporate-owned locations. To view all corporate locations, see

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Norcom Mortgage & Insurance has 13 locations, listed below.

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    Customer Complaints Summary

    • 2 total complaints in the last 3 years.
    • 0 complaints closed in the last 12 months.

    If you've experienced an issue

    Submit a Complaint

    The complaint text that is displayed might not represent all complaints filed with BBB. Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business.

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    Complaint status

    Complaint type

    • Initial Complaint

      Date:05/14/2024

      Type:Billing Issues
      Status:
      AnsweredMore info

      Complaint statuses

      Resolved:
      The complainant verified the issue was resolved to their satisfaction.
      Unresolved:
      The business responded to the dispute but failed to make a good faith effort to resolve it.
      Answered:
      The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
      Unanswered:
      The business failed to respond to the dispute.
      Unpursuable:
      BBB is unable to locate the business.
      I had a mortgage with Norcom which was moved to another lender around 2021. I have been with my current lender for more than three years. I learned that Norcom put a late payment on my credit report even though my mortgage was not with them! They put a late payment on my credit report recording January 2024 while my mortgage was not with them for years!

      When I asked, they said there was a late back in 2021 that was not recorded, yet they placed it on my credit report for this year!

      Business Response

      Date: 05/28/2024

      Good afternoon,

      Thank you for reaching out to us regarding this error. We have filed a correction removing the January 2024 delinquency report, and reporting the correct date of your May 2021 delinquency. This should appear on your credit report within a couple of days. 

      If you have any other questions or concerns, please call ###-###-#### for direct assistance. 

      Thank you,

      Norcom Mortgage

      Customer Answer

      Date: 06/05/2024

      Thank you. The original complaint was fixed but did turn around and change the dates from January 2024 to May 2024 therefore, the problem is not been resolved. I’m feel like I’m being retaliated against and this is against the law I hope we can get this issue resolved. This is affecting my credit. Thank you 

      Business Response

      Date: 06/05/2024

      Good morning, 

      The reported delinquency was corrected from originally being reported as January 2024 to the correct date of May 2021. Please see attached confirmation of the delinquency that was reported. Because there was a late payment in May 2021, we are unable to remove this reported delinquency. If you have any further questions, please reach out to Mike at ###-###-####. 

      Thank you,

      Mike

    • Initial Complaint

      Date:11/20/2023

      Type:Billing Issues
      Status:
      AnsweredMore info

      Complaint statuses

      Resolved:
      The complainant verified the issue was resolved to their satisfaction.
      Unresolved:
      The business responded to the dispute but failed to make a good faith effort to resolve it.
      Answered:
      The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
      Unanswered:
      The business failed to respond to the dispute.
      Unpursuable:
      BBB is unable to locate the business.
      We closed on a construction loan with Norcom in May 2022 with a rate of 5.5% during construction and 5.1% once construction is completed and the loan is converted to a permanent loan. This is evidenced in our promissory note. In early September, I reached out to our servicer to get information on final procedures, and at that time I was informed that our interest rate had “expired” and we would have to refinance using market rates. I went back and forth several times with a loan officer and Norcom’s attorney who are asserting that because we did not complete the construction within a year of the closing, we are in “default” and they have accelerated the loan. I was never notified when our rate “expired” and we were placed in “default”. I was only informed because I reached out to the servicer to inquire about final steps. It’s also my understanding that our loan was only just sent to their legal department for “default” after my conversations with the loan officer and attorney, and not when they are claiming it “expired”. I was told that once we receive the certificate of occupancy, I will receive a letter in the mail indicating that I will have 30 days to pay off the loan completely or refinance. We received a letter from Norcom's collections attorney prior to obtaining the CO stating that we have 30 days to pay off the mortgage or they will commence a foreclosure action.

      Our original loan officer was evidently not knowledgeable in the construction loan space and gave us false and misleading information. She never communicated that we had one year to finish the construction or we would lose our interest rate. Upon closing, I discovered that Norcom never even added me to the loan, only my husband, and our basic information including my husband’s social and our mailing address were incorrect despite being correct on our closing documents.

      Business Response

      Date: 12/04/2023

      Mr. and Mrs. ****** loan has been accelerated due to a default stemming from their Construction Loan Agreement. 

      At the time of closing, the borrowers executed a Residential
      Construction Loan Agreement, Note, Construction/Permanent Loan Addendum to
      Note, Open End Mortgage Deed, and a Construction/Permanent Loan Rider to
      Security Instrument. By executing these documents, the borrowers agreed to
      “comply with the covenants and conditions of the Loan Agreement,” and further
      agreed that “[u]pon the failure of Borrower to keep and perform all the
      covenants, conditions and agreements of the Loan Agreement, the Principal and
      all interest and other charges provided for in the Loan Documents and secured
      hereby shall, at the option of the Lender, and subject to any right of Borrower
      to cure Borrower’s default, become immediately due and payable in full.”
      Paragraph 4 of the Construction/Permanent Loan Rider to Security Instrument
      provides as follows:

      "4. Breach by Borrower. In case of
      breach by Borrower of the covenants and conditions of the Loan Agreement,
      subject to any right of Borrower to cure Borrower’s default, Lender at Lender’s
      option, with or without entry upon the Property (a) may invoke any of the
      rights or remedies provided in the Loan Agreement, (b) may accelerate the sums
      secured by this Security Instrument and invoke any of the remedies provided in
      this Security Instrument, or (c) may do both. Lender’s failure to exercise any
      of the rights and remedies at any one time shall not constitute a waiver by
      Lender of its right to exercise that right or remedy, or any other right or
      remedy, in the future."

      The Residential Construction Loan Agreement obligated the
      borrowers to complete construction on the Subject Property by the Construction
      Completion Date, defined as May 13, 2023.  The Residential Construction
      Loan Agreement clearly stated that all construction must be complete by the
      Construction Completion Date, and specifically advised the borrowers of
      Lender’s options, each at Lender’s sole discretion, in the event that all work
      was not completed to Lender’s Satisfaction by the Construction Completion Date.
      These options are laid out in Paragraph 11 of the Residential Construction Loan
      Agreement, which states as follows:

      "11.         
      Delayed Completion.

      (a)         
      The construction of the Improvements and all conditions for the final
      disbursement of the Loan Proceeds must be fully completed to our satisfaction
      no later than the Completion Date. If all the work has not been completed, or
      any conditions for the final disbursement of the Loan Proceeds have not been
      satisfied and accepted by us by the Completion Date, we shall have the right to
      exercise either of the following remedies, as we shall choose in our sole and
      absolute discretion:
      •            
      declare an Event of Default and exercise all of the rights reserved to us in
      the Loan Documents to act in case of an Event of Default, including without
      limitation acceleration of the Loan balance and foreclosure; or
      •            
      extend the time for construction, in which case you agree to pay the costs,
      fees and expenses associated with such extension, including modification fees,
      extension fees, document preparation fees, courier fees, recording fees, title
      insurance costs, and all other costs incurred or required to effectuate and
      extension of the Construction period.

      (b)         
      You understand and agree that we shall have no obligation to permit more time
      for construction. The time you select for the completion of the Improvements is
      up to you, and failure to fully complete all construction and meet all required
      conditions within the time you choose shall be an Event of Default. Any
      extension that is agreed to by us shall be at our sole discretion."

      The borrowers were advised that based on the above language,
      their loan was in default for failure to complete construction by the
      Completion Date. They were offered an opportunity to refinance into a new loan,
      which would provide additional time to complete construction to avoid
      acceleration of their loan, and declined. After the borrowers declined to
      refinance their loan, the borrowers were given notice of Norcom’s intent to
      foreclose on the property based on the above described default. After the borrowers
      received notice of Norcom’s intention to foreclose, Mrs. **** reached out and
      requested an extension of time before Norcom initiated foreclosure proceedings
      in order to allow them to refinance their loan with another lender. Although
      Norcom as under no obligation to provide such an extension, Norcom agreed to
      provide the borrower with a total of 60 days from the date that the notice was
      received. 

      Mrs. **** was always on the legal loan documents. There was, however, an error when boarding the file to Norcom's sub-servicer that resulted in her name being left off of the account. This was brought to Norcom's attention by Mrs. **** on 11/22/22. It was promptly investigated and corrected. Norcom's head of servicing wrote to Mrs. **** the following day to advise her that the issue had been resolved. 

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