Consumer complaint received 2020-06-23
Company: Caliber Home Loans, Inc.
State: MD
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
I have an ARM with Caliber Home Loans. According to the terms and conditions of the loan, at the 5th anniversary of the loan, the ARM is slated to be adjusted. The date for adjustment is XX/XX/2020. 

I reached out to the company on XX/XX/2020 to find out the new payment starting XX/XX/2020. 

Here is what i received from them : -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- - Dear XXXX, Thank you for your recent inquiry. Our records indicate that a response was provided on XX/XX/2020. Please accept our apologies if you havent received it. Please be advised that the next payment change will be on XX/XX/2020 and interest rate will be 4.1255 %. we have issued a copy of initial ARM notice to your email address on file which will received in separate cover. 



Please note a letter will be mailed 60 days prior to the effective date advising of the new payment amount. 



Check out our FAQ page to find answers to commonly asked questions and to watch our informational videos. 



If you have further questions, please contact Calibers Customer Service Department at XXXX, Monday through Friday from XXXX XXXX to XXXX XXXX CST, excluding federal holidays. 



Thank you for being a valued Customer, cid : XXXX -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- This information does not make sense because according to the terms of the loan, my rate can not be 4.125 %. I replied back to the company on XX/XX/XXXX at XXXX XXXX with the following email : ============================================================ Hello, I am rather concerned and disappointed with the cavalier attitude with which my questions have been answered. I am rather surprised with you answer regarding interest rate, see highlight below. According to the terms and conditions of my loan which I confirmed with Mr. XXXX XXXX, local Caliber Home Loans Officer, the interest rate is adjusted based on 12-month LIBOR ( index ) plus a 2.25 % margin. The current index is at 0.6 and therefore, the  new rate would be ~2.825 %. 



Thank you very much for looking into this and clearing up this confusion. 



Best regards, XXXX XXXX ============================================================ I have not yet received an answer to my query above. 

When I visited Caliber Home Loans website and looked up the details of my loan, it now states that the change date is XX/XX/2020!!! This is very confusing. 
Here are the details on Caliber website : XXXX Interest Rate The interest rate you pay may change on XX/XX/2020 and on that date every 12 month thereafter. Each date on which my interest rate could change is called the Change Date. 
At each Change Date your interest rate will be based on the 1-YEAR LIBOR as published Daily in the XXXX XXXX XXXX. 
Rate Limits Your rate can not go higher than 8.125 or lower than 2.250 over the life of the loan. Your rate can change at each adjustment by no more than 2.000. Please note : if youve had a short term modification that lowered the interest rate below the ARM floor rate stated on the note, the interest rate after the modification expires will adjust to the ARM floor. 
Calculation of Changes Before each Change Date Caliber will calculate your new interest rate by taking the published index rate and adding a certain number of percentage points, called the margin. Under your loan agreement, your current index is 0.816 and your margin is 2.250, We will then round this calculation to the nearest 0.125. 
Your new payment will be based on the 1-YEAR LIBOR index, your margin 2.250, your balance of amortized to the next payment change date, and the remaining loan term of your loan. 
************************************************************************* According to Caliber, I should receive a payment notice 60 days prior to the loan change date. Now, I am not sure if the change date is XX/XX/XXXX or XX/XX/XXXX? It seems all rather arbitrary. When I called them ( which I did multiple times ), the customer service rep always reassures that a loan officer will be calling me back. However, it has not happened yet. 
I am very concerned that my mortgage adjustment is at the mercy of Caliber with no attention to the details of the loan. 
PLEASE HELP.

Company response to consumer: Closed with explanation