Consumer complaint received 2021-07-09
Company: GUARANTEED RATE INC.
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
We have been working to close a refinance with XXXX/Guaranteed Rate since XX/XX/XXXX. Over the course of the last 7 months, XXXX/Guaranteed Rate has conducted itself in bad faith not honor refinance terms/close the loan in what can only be best described as a fishing expedition since the loan is clearly unfavorable to their business. They are currently under obligation to honor a $ XXXX loan@ 2.625 % - 30 yr fixed rate with no lender cost and currently has XXXX pts attached to the loan. 
During this time, our original loan agent has threatened us with removal of loan terms or loan cancellation altogether on three separate occasions. Since, XX/XX/XXXX, XXXX/Guaranteed Rate has claimed delay for the loan/potential denial of the loan on the following reasons : Outstanding HELOC balance that doesn't exist and hasn't existed since XX/XX/XXXX, which was at their request and a new term for the loan from Guaranteed Rate and not with the originator of the loan, XXXX ; XXXX XXXX XXXX that were contracted as " paid with cash '' but were considered by XXXX/Guaranteed rate as a lien against the house despite no credit evidence or contracts stating so ; " Permitting issues '' with the XXXX XXXX XXXX which never existed ; and most recently, that the traceable gift money used to pay off the HELOC Account will not be accepted by underwriting in addition to a draw on the loan on XX/XX/XXXX and XX/XX/XXXX of XXXX. 
Please see the numerous emails attached as evidence as well as the documented timeline of issues below. 
All events occur in the year XXXX. 
XX/XX/XXXX XXXX contact XXXX  regarding finance for a $ XXXX XXXX 2.625 % with XXXX points and {$11000.00} closing costs XX/XX/XXXX XXXX Authorization agreement is signed with our loan office XXXX XXXX XX/XX/XXXX Loan submitted by XXXX XXXX for procession XX/XX/XXXX & XXXX HELOC Loan balance of {$53000.00} was paid in full at request of XXXX. XXXX also confirmed to keep the HELOC open and it would be closed at the time of the Loan Closing XX/XX/XXXX Home Appraisal issue raised to XXXX XXXX. 
Appraiser mis-measured the square footage of the house by 126 square feet which equated to $ XXXX of value from property Additionally, Appraiser used inappropriate comparison houses to determine value RESULT : We did not meet the loan to value ratio and our terms were to updated to 2.625 % at .875 point with closing costs of {$13000.00} When we challenged the appraisal, our loan officer XXXX XXXX threaten us with a completely new loan at current market rates and new closing costs if we did not accept the appraisal as is and wanted to challenge it within the company We accepted not to lose our current pricing and rate knowing its value over the lifetime of the loan XX/XX/XXXX Notified by XXXX XXXX that Guaranteed Rate would be procuring XXXX and that all loans would be restarted under Guaranteed Rate XX/XX/XXXX Guaranteed Rate closes on XXXX XX/XX/XXXX Guaranteed Rate emails welcome letter XX/XX/XXXX eConsent signed for loan with Guaranteed Rate which was honor all XXXX  terms and conditions according to our loan agent, XXXX XXXX XX/XX/XXXX XXXX  request update on status of restarting the loan XXXX XXXX Guaranteed Rate sends ID verification which is completed that day XX/XX/XXXX Guaranteed Rate sends erroneous email concerning our application as being incomplete and untouched for several week by us, the applicants. We reach out to confirm issue and are told it is erroneous and ignore XX/XX/XXXX XXXX request update on status of loan. No response from our loan agent or any agent of Guaranteed Rate XX/XX/XXXX Guaranteed Rate asks for us to reupload our XXXX & XXXX tax returns. XXXX confirm both are already in the XXXX portal from previous requests. 
XX/XX/XXXX Guaranteed Rate, again, sends erroneous email concerning our application as being incomplete and untouched for several week by us, the applications. We confirm that we can ignore and ask for an update. XXXX XXXX confirms that we are running behind. There should be an update by end of this week or Monday at the most. 
XX/XX/XXXX XXXX request update on status of loan for 3rd time. New processor is assigned, XXXX XXXX. We asked XXXX for an update to which more information from underwriting was requested and submitted that day. 
XX/XX/XXXX Guaranteed Rate confirms Loan was submitted to underwriting. 48 hours update on progress of underwriting quoted XX/XX/XXXX 1st request from underwriting for HELOC paid-in-full and confirmation of {$0.00} balance requested. XXXX submit requested paperwork that day. 
XX/XX/XXXX The following requests come from Underwriting : XXXX balance demand letter from XXXX XXXX re : HELOC ; XXXX request for Replacement Lost Estimator ; Request to XXXX XXXX XXXX XXXX re : permission for credit supplemental on a closed account ( closed for several years ). All paperwork requests are completed that day. 
XX/XX/XXXX Closing disclosure Signed XX/XX/XXXX New Appraisal received revealing a $ XXXX increase in total value from the appraisal filed in XXXX. 
Appraisal included the correct square footage including the square feet that were missed in the XXXX appraisal and the comparisons were proper XXXX inquired on whether the original terms would set before the clearly erroneous first appraisal that resulted in us being threatened into new terms XX/XX/XXXX - XXXX XXXX threaten us that if we did not drop the appraisal objection, Guaranteed Rate would cancel the loan. They are looking for any excuse to cancel this loan. They are looking to cancel loans like this for any reason. 
We reluctantly gave permission to continue forward in order to prevent the loan from being cancelled as per the threat XX/XX/XXXX Guaranteed Rate AGAIN requests proof of payment for the HELOC loan and XXXX balance despite documentation submitted twice before in addition to a Zero Demand letter being issued by Third Federal Documents are reuploaded that day as requests XX/XX/XXXX XXXX request update on status of loan for 4th time. XXXX XXXX confirms he would get back to us XX/XX/XXXX XXXX  request update on status of loan for 5th time. No response from Guaranteed Rate or XXXX XXXX XX/XX/XXXX XXXX  request update on status of loan for 6th time. Guaranteed Rate claims they are waiting on an internal response and will get back to us XX/XX/XXXX Guaranteed Rate begins to inquire about the ownership status of the XXXX XXXX XXXX installed in XX/XX/XXXX XXXX XXXX threatens us a third time saying that the loan will not be honored due to permitting issues with the solar panels in additional to there being a lien against the house due to the solar panels. XXXX nor anyone connected to underwriting ever explains what permitting issues means. 
We alerted to XXXX that no such issues exisedt nor did any one from Guaranteed Rate pull the permits when confirmed with the Permits Department at XXXX XXXX so no issues exist that could block this loan ( the permits are approved ) We also sent documentation showing that the panels were contracted for payment in cash and that no funding or lease agreement had been contracted with XXXX. Additionally, there was no trace of any new loans or credit being leveraged to pay for the panels Lastly, we alerted the reason the XXXX account had not been settled is because in the state of California, contracted work can not be billed unless finished. The installation was NOT finished due to issues on XXXX end and that is why the invoice had not be issued or resolved. XXXX confirms from Guaranteed Rate this is what is holding up the loan now. 
XX/XX/XXXX XXXX contact customer care at Guaranteed Rate and escalate the issue to their director of Customer service, XXXX XXXX. 
Emails were sent outlining all the issues including notifying them that XXXX XXXX has threatened the terms of the loan and the overall status of the loan on three separate occasions. 
This is when we were first made aware that the rate was expiring soon though no one would confirm XX/XX/XXXX XXXX received first confirmation from Guaranteed Rate that the current terms and rate was set to expire in 6 calendar days We received our first call with XXXX XXXX, Direct Manager at Guaranteed Rate and XXXX XXXX direct manager We agreed to pay the XXXX XXXX Balance in Cash or provide an escrow account for the amount due in order to satisfy Underwriting XXXX, a processor contacts us again, requested HELOC paperwork showing {$0.00} balance. Paperwork is submitted yet again that day XX/XX/XXXX XXXX confirms 20 calendar day rate extension. Underwriting demands that proof of payment for XXXX is the only acceptable resolution to the issue. 
XX/XX/XXXX XXXX XXXX panels are paid in full as underwriting requests Upload of paper trail to prove payment and source of funds is uploaded to XXXX portal XX/XX/XXXX XXXX Paid-In-Full Invoice uploaded to XXXX portal and the XXXX issue is confirmed RESOLVED XX/XX/XXXX Request for Update. XXXX XXXX says that the missing HELOC paperwork is still an issue. We make him aware that the paperwork has always resided on Guaranteed Rates end and that weve already complied with the third request dated XX/XX/XXXX We are made aware that XXXX was no longer with company due to our issue and issues related to other accounts XX/XX/XXXX XXXX  demand a response on the status of the loan. Guranteed Rate still claims that HELOC balance is still and issue despite all paperwork submitted MULTIPLE times XXXX XXXX alerts us that he is stepping down as a manager and the Evolve is refusing to close the loan XXXX informs us that in order to honor the loan as obligated, they will be transferring it back to XXXX and assigning a new loan officer since XXXX XXXX had been let go. XXXX XXXX was our new point of contact XXXX confirm via email that XXXX would be honoring the same rate and terms as well as pursuing an attempt at discounting the pricing due to the numerous customer service and legal skirting issues outline above We have XXXX confirm that they will keep open the Guaranteed Rate Loan in case that can close sooner than the new, restarted XXXX in an effort to close as quickly as possible given the extreme delays. We agree to move forward. 
XX/XX/XXXX XXXX XXXX requests permission to pull credit for the new loan paperwork. Credit is pulled XX/XX/XXXX XXXX XXXX attempts to have us sign paperwork reflecting currently rates, pricing, and terms and not our agreed upon terms since XX/XX/XXXX. 
XXXX states via email that the terms will be adjusted properly once the pricing team returns from the holiday despite the Guaranteed Rate expiration of the rate occurring in 5 calendar days We ask what the consequences of would be not signing and that this feels like a trap XX/XX/XXXX XXXX calls and confirms that Guaranteed Rate will be keeping the loan as they can and are able to work to close. The rate is extended for another 20 days. XXXX paperwork and restart is abandoned. 
XX/XX/XXXX New Sr. Processer, XXXX XXXX, requests additional paperwork from underwriting : XXXX and XXXX statements for XXXX checking and savings account ; confirmation that we have $ XXXX of total available funds ; If no confirmation, then proof in other liquid assets ( IRA , retirement, brokage accounts etc ) to cover the difference ; the complete XXXX tax return ( I believe now this is the fourth or fifth time ) ; explanation for a check # XXXX from checking account to proof its not newly obtained debt ; and source for all funds of the HELOC payoff All requested paperwork is submitted including proof that XXXX of liquid assets in only 2 of our brokage and IRA accounts ( we have close to 5 or 6 total ) are available as liquid assets We confirm that check # XXXX is for XXXX bills paid out to XXXX XXXX , the spouse of XXXX XXXX and applicant We confirmed that the money was gifted to us by our parents and then used to pay off the HELOC. A letter from our parents outlining the gifts and confirming that they are not debt nor asked to be repaid as per standard, legal practice concerning gift money to help shore up refinances/mortgages. We also uploaded the checks showing the source of the gifts came from our parents as per the letter. 
XXXX called later that evening to announcement that underwriting will be denying the loan due to the gifted money used to close the HELOC balance in XXXX despite having proof it was a legal gift and not a newly obtained loan. He also cited that underwriting was also not approving the loan because there was a draw on the loan in XXXX and XXXX of XXXX. 
XXXX request escalation to a manager the VP of Loans who is supposedly looking after our file. XXXX submit complaint to CFPB

Company response to consumer: Closed with explanation