Consumer complaint received 2022-11-03
Company: Lennar Financial Services, LLC
State: GA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
On XX/XX/XXXX, I signed a contract with XXXX XXXX for a new build townhouse with the intentions as noted in the contract to receive the {$30000.00} incentive. There are several items with regards to the incentive that I deem inappropriate, misleading, and predatory. These issues are as follows : XXXX. In emails on XX/XX/XXXX with Lennar Mortgages XXXX XXXX XXXX, I asked XXXX XXXX to show me how the {$30000.00} is being used on my estimated disclosure form. He stated that he is unable to show me how much of the {$30000.00} is being used towards the promotional rate. However, the fact that the rates are almost XXXX points lower than the current rates is a sign of proof that the money is being used. 
a. The inability to account for all the money on the estimated loan document is a predatory lending practice. It is illegal for a lender to withhold financial information. 
XXXX. In the initial conversations with XXXX XXXX, Lennar Sales Agent for XXXX XXXX, he stated that Lennar XXXX will cover the costs of any rate lock extension if the house is not delivered on the anticipated closing date. On XX/XX/XXXX, my realtor had a discussion with XXXX XXXX. He refused to add an addendum to the contract stating that Lennar XXXX will cover the costs associated with a rate lock extension if the house does not close on time. 
a. The refusal to add an addendum to the contract based on XXXX XXXX comments with regards to the business practices of Lennar XXXX is unacceptable. The refusal to put a business practice in writing on the contract as a safe-guard for the buyer is dishonest on the part of the seller. 
b. The disclosures that were signed on XX/XX/XXXX states that the Buyer will pay for the rate lock extension in the Lock-In Terms on page XXXX of XXXX part XXXX. The wording in the contract does not state what XXXX XXXX promised me. 
XXXX. The original Closing Cost Worksheet from XX/XX/XXXX, had an origination points of XXXX  % for {$3100.00} with less than {$20000.00} total required for closing. The loans estimates on XX/XX/XXXX had origination points of XXXX  % for {$1700.00} and {$18000.00} required to close. The loan estimate that I signed on XX/XX/XXXX, has an origination point of XXXX  % for {$11000.00} with more than {$27000.00} required for closing. The estimates are supposed to be good faith estimates. The fact that these numbers are drastically different means that they are not good faith. 
a. I have asked XXXX XXXX about these origination points, he can not explain why they have increased so dramatically. 
XXXX. Initially, in dialogue with XXXX XXXX, I was told that I could lock in a rate at XXXX  days. In corresponding emails prior to the XXXX  days before closing, XXXX stated that the rules have changed and I can lock in a rate at XXXX  days. However, when I locked in the rate, the rate was locked for XXXX weeks beyond my closing date. My closing date is scheduled for XX/XX/XXXX. However, my rate lock is good until XX/XX/XXXX. Additionally, my rate is locked for XXXX  days. 
a. Lennar has been misleading in their conversations with me regarding this rate lock. The rate being extended past the closing date only benefits Lennar XXXX. According to XXXX XXXX, Lennar XXXX will pay for the rate lock extension if the closing is delayed due to construction. The contract needs to be amended to state the business practice of Lennar XXXX. 

To summarize my concerns, it is illegal for a lender to not disclose all the financial information on the disclosure form. It is not in my best interest to trust the words of the seller without the guarantee of an addendum to the contract. Lennar XXXX and Lennar Mortgage are practicing bait and switch tactics by providing estimates with lower fees, then locking in mortgages with significantly increased fees. For these reasons, I am requesting the return of my earnest money of {$7500.00}, immediately.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation