Consumer complaint received 2021-06-28
Company: GREENTREE MORTGAGE CO. L.P.
State: NJ
Product: Mortgage
Sub-product: FHA mortgage
Issue: Closing on a mortgage

Complaint:
I closed on a house one month ago, on XX/XX/XXXX, and wanted to inquire about a situation I experienced with the mortgage company. Really just looking for advise on what I can do but I'm not sure there is anything. I was put in touch with one of the representatives of Greentree Mortgage by my realtor during the pre-approval process. They were able to get me a pre-approval for an FHA loan. This was in XXXX of 2020. We finally found a house that took our offer in XXXX and at this point we find out how much we would pay each month and that even with putting 20 % downpayment we would have to pay the {$200.00} each month for 10 years for mortgage insurance. At this time I went through lending tree just to see what other mortgage companies would offer and the majority stated I wouldn't have to pay the insurance if I was putting 20 % down. But it would take 30 days to process everything and I couldn't push back the closing date, I was worried the sellers were going to back out of the offer.

So, the week after I closed I was looking to refinance. The representative with Greentree mortgage got word of the refinance and sent me an email stating that if I paid off my mortgage that quickly though another loan they would be audited and there would be severe penalties. He said that after all the work they did to secure me this loan let them look into refinancing and it would be cheaper since I wouldn't have to pay all of the closing costs. So, literally about a week after I closed all of a sudden they're about to get me a conventional loan and it will save me about {$130.00} a month but I'd still have to pay {$8000.00} in closing. Again after I just paid {$12000.00} to close with the same company the week before. 
He says that the closing will almost wipe out the savings I would have in monthly costs but if I wait 7 months it will build up my equity enough that I wouldn't have to pay the closing costs. He said it's up to me. Since I just closed on the house I didn't really have the money to close twice so I agreed and said I'll wait until XXXX. He stated he will reach out to me then. 
Well now it is XX/XX/XXXX, which is about XXXX weeks after we last spoke and a month after I closed on the house and they sold my mortgage to XXXX Mortgage. So I guess now I have a different representative? I don't know, nobody has reached out to me. 
My inexperience in the loan process and going with Greentree Mortgage has definitely cost me alot of money that I'm going to have to pay over the life of the mortgage. I'm not sure if this is how mortgage companies operate nowadays but I purchased a condo about 15 years ago through XXXX XXXX and the experience was definitely alot different. I just find it odd that he gave me the best loan possible ( according to him ) in XXXX and then a week after I closed and he heard I was refinancing he was able to find me a much better loan. I'm not sure what all I can do now but hopefully this can help someone else avoid this experience.

Company response to consumer: Closed with explanation