Product: Mortgage

This complaint is filed as a first attempt to get the sum of {$4700.00} and {$550.00} ( Total {$5200.00} ) refunded, after discovering the Companys Predatory Lending Tactics during the Loan application process. 

I am currently under contract with XXXX XXXX for a new construction XXXX XXXX scheduled to close XXXX XX/XX/XXXX. This will be my first time home purchase. Upon intent to proceed, I was asked to pay an earnest money deposit of 6 % of Home Cost ( {$28000.00} ) towards the home. The seller also advertised having a seller credit of {$28000.00} added to closing cost if I went with the preferred Mortgage company NVR Mortgage. In the event I did not go with NVR I do not receive the seller credit. The offer Sounded great, and I decided to proceed with a Loan application. An additional {$550.00} was sent for the Home Appraisal, bringing total funds credited to {$29000.00}. 

Even with my really good credit, the Loan officer kept pushing for an XXXX XXXXXXXX. I later found out reason was to enable easier access to extort funds. 

Meetings were held with the Loan officer to go over the numbers, and the interest rates were locked in very early on in the process in XX/XX/XXXX. Per the loan officer, the company had a program that will help the buyer lock in a different rate in the event interest rates go down closer to the closing date. This option was called XXXX XXXX which is a 1 % fee of the total purchase price. The fee amounted to {$4700.00}. I was told I could transfer funds from my earnest money down to the XXXX XXXX account, but will need to provide written confirmation. I was also informed that in the event I dont utilize the XXXX XXXX, I will have the money go towards my down payment. Sounded straight forward, so I provided the confirmation email and signed the XXXX XXXX papers without thorough review, believe I was working with an honest company. 

As the process went by, I was uncomfortable with the numbers provided, and decided to do proper research and cross check each estimate. Upon researching and now having gained better knowledge of the home purchase process, I discovered NVR was inflating my costs to close, excluding lender credits, reducing amount of deposit made, reducing what my percentage for a down payment of an XXXX loan is, including costs for a premium mortgage insurance to my seller costs and also including same amount to the amount being loaned ( double charges ), including Transfer Taxes to my cost, however contract with seller states that the State Transfer taxes will be paid for by the seller. All these issues raised Red Flags, and my questions left unclearly answered, hence my decision to not proceed with NVR as my Mortgage Lender. The explanation for the discrepancies was said to be due to how the company system is set to operate, which I knew was False. As the explaining was them going in circles. I was also informed I will Forfeit the fees for the float down if I withdraw my Loan application. Unfortunately, the XXXX XXXX addendum had that clause indicated, but I did not anticipate not moving forward with NVR as I assumed I was in good hands. 

I intend to pursue to all extent possible to receive my funds back, as the breach was on the part of NVR providing False estimates, double charging and inflating costs and trying to extort additional funds from a First Time Home Buyer. The cost estimates provided show it all. ( a total of XXXX estimates are attached ) This has made an experience that should have been good, quite painful and hurtful. 

Below is a break down of issues noted. 

* A. FINAL LOAN AMOUNT HAS UPFRONT MORTGAGE INSURANCE PREMIUM INCLUDED ( IN ALL ESTIMATES PROVIDED ), HOWEVER THAT AMOUNT IS NOT INCLUDED IN Closing cost financed by lender section OF THE CLOSING COST SHEET, INSTEAD MY DOWN PAYMENT FIGURES ARE MANIPULATED.Home price is {$470000.00}, after 3.5 % amount is {$460000.00}. With Upfront premium mortgage insurance added amount goes up to {$460000.00}. However Lender fails to include the premium mortgage insurance being lended to the total costs. 


* B. DOWN PAYMENT AMOUNT FOR XXXX FHA LOAN IS 3.5 % OF THE TOTAL PURCHASE PRICE, WHICH IN MY CASE IS {$16000.00}, HOWEVER DOWN PAYMENT IS NOT LISTED AS 3.5 % ON ALL ESTIMATES PROVIDED. IT IS LISTED AS {$8600.00}. ( 1.75 % ) In order words intentionally reducing my down payment, having me pay for the upfront mortgage insurance, but still including the upfront mortgage insurance in my loan amount. 

* C. MY DEPOSIT FOR THIS HOME IS {$28000.00}. IN A RECENT ESTIMATE SHEET PROVIDED ( XX/XX/XXXX ), THE SUM OF {$24000.00} IS INDICATED AS MY DEPOSIT ( per XXXX reason was because that is what is reflecting on XXXX XXXX end due to the reallocation of funds for the XXXX XXXX option, ) HOWEVER XXXX FAILED TO INCLUDE THE FUNDS OF {$4700.00} IN THE SHEET UNDER OTHER CREDITS ( Which inflates my total cost due ) * D. TRANSFER TAXES : TRANSFER TAXES FEES DONT ADD UP : MD STATE TRANSFER TAXES IS 0.5 %. For a first time home buyer this is discounted to 0.25 % in which the seller is paying that amount. ( as confirmed in the contract ) All other Transfer Tax and Fees have First Time Home Buyer exemptions, however cost estimate has entire amount indicated for the buyer ( myself to pay ) * PERFORMING AN APPRAISAL ON A HOUSE NOT HALF WAY COMPLETE, EVEN AFTER SENDING AN EMAIL TO WITHDRAW THE LOAN APPLICATION. 


These Predatory Practices are appalling and people need to be protected.