Consumer complaint received 2020-03-26
Company: BROKER SOLUTIONS, INC.
State: MN
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
On XX/XX/XXXX we contacted XXXX XXXX, Loan Consultant for New American Funding ( NAF ), to request a home loan for {$200000.00} on a {>= $1,000,000} home purchase. We informed him of our closing date and time : XX/XX/XXXX at XXXX XXXX  We indicated this was a firm date and time because it followed the closing on the sale of our current home at XXXX XXXX that same morning. 
We asked if there was enough time to process the loan. With 45 days to process the loan, XXXX indicated it would be no problem : this is easy, a no-brainer. He felt particularly confident because of the low loan to value ratio and because we had just completed a home refinance with him/NAF on XX/XX/XXXX. Most of the required documents for underwriting ( both personal and business ) were useable and already on file with NAF. With XXXX  assurance, we applied for the mortgage. 
On XX/XX/XXXX, XXXX sent us mortgage rate information and loan amount scenarios. Around XX/XX/XXXX we locked at 3.5 % and asked if we had the option to relock/reprice if rates dropped. We were assured we could. On XX/XX/XXXX we requested our option to relock at a lower rate. XXXX suggested a lock at 3.0 % and paying {$500.00}. 
An appraisal was ordered for XX/XX/XXXX and we submitted our insurance brokers contact information to NAF on XX/XX/XXXX. We were told NAF would follow up with our broker. We ( and our realtor ) consistently followed up to make sure everything was progressing so we would be clear to close. 
Just before closing ( XXXX XXXX ) we were still receiving document/signing requests including but not limited to : Missed e-signatures on loan documents Requests for bank statements Proof of earnest money - paid and cleared Release of social security number request, etc. 
We immediately replied and provided all requested documentation and signatures. We also followed up with XXXX/NAF several times to let them know our insurance broker had not been contacted. 
On XX/XX/XXXX we received a text from XXXX indicating we should sign an emailed closing disclosure : Needs to be signed today. We dont even need to review it cause there are gon na be a bunch of changes. We will review the final one once we have it ready. At XXXX XXXX. on XX/XX/XXXX we received a text saying We are clear to close! I will call you tomorrow to go over the details. That didnt happen. We did not receive the document in order to review final changes and loan details such as interest rate, loan amount and fees. 
On XX/XX/XXXX XXXX called to assure us the documents would be ready for our closing the next morning. He confirmed he would meet me ( XXXX ) to review the documents prior to the XXXX XXXX   appointment. 
On Monday, XXXX did not come to the closing. He stated that he had to work from home to access underwriting and his funding manager to get the documents to us on time. At XXXX XXXX the closer informed me that she had not received the closing documents. At XXXX XXXX XXXX copied me on a note from his funding manager indicating they were still working on the documents and needed approximately 30-45 minutes to complete them. It took over 90 minutes and was clear from the message the documents would never have been ready by XXXX XXXX NAF did not send the documents until XXXX XXXX - nearly five hours after our scheduled closing time. The closing disclosure did not reflect some of the anticipated changes. 

This inappropriate and poorly managed process resulted in several embarrassing and costly errors : The sellers real estate agent was very concerned the funds were not available to pay the seller at the closing time making for an awkward situation. 
Our closer agreed to stay until the documents were received from NAF ( fortunately she did not have any additional appointments that day ). Again, awkward and embarrassing. 
I ( XXXX ) could not assist in moving items to our new home ( our move out and move in date was scheduled the same day XX/XX/XXXX ) as originally planned and so we had to pay our movers for additional hours of service. 
XXXX did not review the documents with me prior to closing ( we were running out of time to fund the loan that day ). Nor did he attend the closing. As a result we signed papers that did not reflect the rate we thought we relocked at and were also surprised to find a proceeds deduction for one years insurance premium ( we were hoping to pay our homeowners insurance in monthly installments with our other bundled insurance policies/premiums ). 
The closer reviewed the closing documents with me. Her comment : In thirty years of facilitating closings, I have never seen anything as unprofessional as this. I would never recommend New American Funding. Echoing the sentiments expressed by our previous closer for our home refinance in XXXX of XXXX ( details follow ). 

Interest Rate Recap Following is a brief description of our interest rate discussions. XXXX indicated he would secure a one-time lower rate from the 3.5 % original lock. When rates fell and we contacted him he suggested a 3 % relock ( with an additional {$500.00} paid by us ) as outlined previously. He was certain it would be approved. It did get approved but contingent on him giving up his commission. We still do not understand why this was required or how the details for that worked. As a result, XXXX forfeited half of his commission to get our rate down to 3.25 %. He additionally agreed to send us the other half of his commission to make amends for not securing the final rate of 3 %. We are waiting for his promised payment of {$650.00}. 

XX/XX/XXXX Refinance with XXXX/NAF We also used XXXX/NAF for a {$900000.00} mortgage refi in XXXX of XXXX. Sadly, it was a carbon copy of the experience summarized above. Again, there was confusion about the interest rate and insurance, multiple requests for documents that were already sent, numerous and last-minute requests for key documents and no timely delivery of closing documents ( they were sent to us while driving to the closing ). The closer ended up reviewing them with us and said she would not recommend XXXX/NAF based on what she saw. 

We requested the branch manager contact us to see if some of the lenders closing costs could be refunded due to the hassle and discrepancies. We were never contacted. 

Summary In XXXX we were very impressed with XXXX when he was with XXXX XXXX  XXXX XXXX XXXX XXXX XXXX and directed a refi for us. Unfortunately, both of our recent experiences with him and NAF were disasters and proved to be arduous, embarrassing and costly. 
We gave XXXX another chance because of the XXXX successful refi and because we believed he was working on our behalf for the XXXX refinance despite NAFs processing that was disorganized, sloppy and disjointed. We gave NAF a second chance because they had our required financial information ( which should have greatly expedited closing ) and the loan was so simple ( {$200000.00} on a {>= $1,000,000} appraised purchase ). 
Again, we requested a branch manager from NAF contact us regarding their poor service. We have not heard from anyone. 

In hindsight we realize we were told things only to get the sale ( loan ) and NAFs process continued to be riddled with issues. Promises were not kept ; deadlines were consistently missed, and communication was disjointed and often inaccurate. We do not feel we received the service we paid for in either the XXXX refinance or the XX/XX/XXXX new loan. 
When asked for advice, our most recent closer suggested we file a complaint with CFPB.

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