Consumer complaint received 2018-11-12
Company: American Financial Network Inc.
State: ID
Product: Mortgage
Sub-product: Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process

Complaint:
As an XXXX  XXXX I dont have much documentation to provide for additional income. After approval for an equity loan from a XXXX I thought Id shop one more option. I called a loan officer Id spoken to previously that dealt with people who were proof of income challenged. 

The loan officer, XXXX XXXX said he no longer worked for the same company however AFN dealt with my circumstances often. As long as I had good credit and 2 years of tax documentation that would basically be all Id needed, same with the other lender. 

Throughout the process he informed me of the many shortcomings of the opposing lender as well as the benefits AFN. Understandably, more and more info was needed. Once all of my documentation was verified it was at the point of appraisal. I asked repeatedly if my loan was definitely approved and if they were positive they had everything needed. I had to be sure there would be no issues to haunt me to prevent having to pay another appraisal fee. I was assured repeatedly by XXXX and XXXX that they received everything, the approval was definite and no problems would arise. In the meantime I had been quoted, many times, a payment amount and general fee range at closing. 

Though they said everything was obtained, AFN then asked for one last thing once the appraisal was complete. Though they already had the forms, they needed tax verification directly from the IRS. I was assured again that was the final piece of documentation before funding. 

Time to meet with the notary. Going through the paperwork, the first things that jumped off the pages were the increased payment amount and the increased fees. The notary advised me to go ahead and sign the docs as I had 3 days to rescind the loan. She dog-eared the pages referring to my legal rights. 

Immediately, I called XXXX XXXX regarding the payment increase and fee increases. He nonchalantly said that he quoted only the principle payment. What? The fee increase was because my loan was so small so the fees and interest would be higher. Just the nature of the business as they get their money any way possible. These were the very things XXXX warned me about regarding the other lender. So I had 3 days to decide what to do. 

It was too late in the process to start over, not to mention having to pay for another appraisal through another lender. I had been out of town dealing with serious family matters during this crucial time so the thought of going through it again was daunting. 

In that 3 day period I had the added pleasure of receiving a termination of insurance notice because AFN gave my insurance co the wrong information. Then AFN sent me new docs to sign because my payments were to increase again. Asking why, they explained that I hadnt given them the correct annual insurance rate so they had to recalculate my terms. Calling my ins co, AFN had asked for my annual rate plus what my rate would be from that day until the end of the term, then they added it together! These are the people calculating my 30 year loan. My annual insurance had been paid in full already. There was nothing owing and nothing incorrect on my part. I had to make several calls to rectify the problem as AFN did nothing but attempt to raise my payments again. XXXX, the AFN loan processor acted as though this was no big deal. She couldnt have been more condescending when I asked her to send email confirming that the matter was taken care of. 

By this time the many inaccuracies, discrepancies and recalculations by AFN were making me extremely nervous. I tried checking and double checking to make sure there would be no more awful surprises before the loan was funded and closed. They were completely annoyed by my diligence, however assured me that unforeseen problems were over. However they werent done ripping the rug out from under me. 

XX/XX/2018, almost 2 months after my loan was funded and closed, I received a phone call from AFNs director of credit risk, XXXX XXXX. He said that they needed more documentation. I had already made my first payment! As they knew from day one, I had given them everything XXXX possible could already. The loan officer and processor were fully aware of that from the beginning. Why were they asking for more now? Because theyre having problems selling my loan. Now my nightmare begins. 

So, after Mr XXXX said hed figure something out, ends up it was not to help me. He then made the loan officer call me XX/XX/2018. XXXX XXXX had been let go before my loan had closed ... the second mortgage company in less than a year. At first XXXX was awkward and uncomfortable, then he became very agitated. He began to threaten me with rescinding the loan ... he said it was not their problem, it was my problem. The closed loan that he repeatedly reassured me about, and that had already been disbursed to paying off a note, credit lines, and materials and services to improve my home is going to be taken back. Or they will sue me for default. Which most likely ends in foreclosure and mutilating the credit. 

AFN should have warned me that there could be any possible issues down the road and that something like this was even possible. I should've had the chance to choose a major lender that not only approves, but can afford to honor and keep the loans they fund. Ive worked so hard to buy my home, make improvements to build equity and achieve an equity loan. Now they are going to take it all away from me because they apparently made many mistakes. 

Now I'm forced to hire an attorney I can not afford. They have discontinued mailing me payment coupons to solidify their claims of default. I could very possibly lose everything. Not because I have bad credit or dont pay everything on time. My credit and payment history is excellent. I could lose the home I literally put my blood sweat and tears into, and continue to, because AFN, wants to sell a loan they approved based on legitimate, verified facts by their own requests and criteria.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation