Consumer complaint received 2020-12-21
Company: GUARANTEED RATE INC.
State: VA
Product: Mortgage
Sub-product: VA mortgage
Issue: Trouble during payment process

Complaint:
On XX/XX/2020, I emailed the company through their own messaging application tied directly to my account. I requested details on why the extra payments I've been making toward my principal balance were NOT being applied solely to the principal balance, but instead to future mortgage payments, meaning, they're paying PITI as a regular payment, then any additional funds left over after that as a principal curtailment. I got NO response. 

So, on I think XX/XX/XXXX ( Maybe XXXX or XX/XX/XXXXXXXX ), I called Guaranteed Rate and spoke to a representative. I asked the same question and the customer service representative explained that they were applying the payments correctly, and that I had nothing to worry about because I was paid up all the way through XXXX or XXXX of 2020. I told her that my intent was NOT to pay the bank interest on ANY of the extra payments, but to actually pay down the principal balance, thus lowering the balance against which the future interest payments would be charged. She seemed to understand my plight and said that I should not send in extra payments anymore and, instead, I would manually have to go into their website each month and use their " one time payment '' button. 

Although not convenient, since I set up all these extra payments to happen automatically from various banks at which I have an account, I canceled all those automatic payments from happening in the future. Tonight, XX/XX/2020, I attempted to make extra payments as advised through their " one time payment '' button, and I continue to receive an error that the one time payment option on the website is not available for my loan. 

It seems to me Guaranteed Rate is posturing to ensure consumers, or at least me, are forced to pay the full amortized interest amount, as they are blocking my ability to pay down the principal balance on the loan. 

I started making extra payments almost right away when the loan was opened this year, after a refinance. Guaranteed Rate correctly applied the extra as a principal curtailment on the regular monthly payments I was sending in on the first of the month. My monthly PITI is : XXXX. I was sending in {$3600.00}, so the correctly applied {$1500.00} as a curtailment. However, when I started making extra payments mid-month on top of the regular payments, they did not apply them correctly. Ostensibly, they are working on fixing their error, per my phone conversation, which the customer service representative said would take somewhere around two weeks ( 7-10 Business Days ). In the meantime, I'm also blocked from making " one time payments '' as they suggested. 

Below is the payment breakdown in question : XX/XX/2020 : {$3600.00} Mailed In : XXXX applied as mortgage payment ( CORRECT ) XXXX as principal curtailment ( CORRECT ) XX/XX/2020 : {$3000.00} Mailed In w/ memo to apply to principal only : XXXX applied as a mortgage payment covering PITI ( INCORRECT ) XXXX applies as principal curtailment ( INCORRECT ... all {$3000.00} was to be applied to principal ). 

XX/XX/2020 : {$3600.00} Mailed In : XXXX applies as a mortgage payment ( CORRECT ) XXXX as principal curtailment ( CORRECT ) XX/XX/2020 : {$3000.00} Mailed In : XXXX applied as a mortgage payment covering PITI ( INCORRECT ) XXXX applied as a principal curtailment ( INCORRECT ... all {$3000.00} was to be applied to principal ) XX/XX/2020 : {$3600.00} Mailed In XXXX applied as mortgage payment ( CORRECT ) XXXX applied as principal curtailment ( CORRECT ) XX/XX/2020 : {$3000.00} Mailed In XXXX applied as mortgage payment covering PITI ( INCORRECT ) XXXX applied as principal curtailment ( INCORRECT ... all {$3000.00} was to be applied to principal ). 

XX/XX/2020 : {$3000.00} Mailed In ( I was unable to cancel this automatic payment in time after talking to Guaranteed Rate, so it went through anyway. Miraculously, it was all applied as a principal curtailment, as I requested.

Company response to consumer: Closed with explanation