Consumer complaint received 2020-12-02
Company: AMERISAVE MORTGAGE CORPORATION
State: DC
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
In shopping for a home-refinance, I spoke with Amerisave on XXXX XXXX, 2020, and received a quote for refinancing terms at 2.875 % interest with {$1900.00} in lender 's credits. I was assured step by step by the loan originator that the interest rate would not increase, regardless of market conditions, pending no change in my financial assets in underwriting. We were assured that the interest rate/ amount of the lender 's credits could only improve throughout the refinancing process. I verified this at every step of the review of the loan estimate. 

Amerisave requires a {$500.00} application fee prior to revealing their disclosures. We paid this fee on XXXX XXXX, 2020, only to find that the terms as described by the loan originator were not accurate. The rate on page 18 of the attached disclosures was described as floating rate lock : " Until your interest rate is locked, your interest rate is considered a floating rate. This means that as the market improves or worsens your interest rate will too. '' In writing, the terms were not as described as it states that the rate could increase or decrease based on the market movements. 

I contacted the loan originator on XXXX XXXX to ask for a written agreement on the terms of the float down rate as he verbally described in selling Amerisave 's services. The originator never responded. We called him and he stated over the phone that he could not agree to those terms in writing. I feared we had been trapped by a bait-and-switch tactic from this company as what he was saying verbally was not what was written and verifiable in a legal sense. He did not offer to lock the rate either. He referred my husband and I to his manager. 

We finally were able to speak to the manager and requested the {$500.00} application fee be refunded immediately as we were assured something different prior to the application fee only to find once we paid the money that the disclosures were indeed different. The manager was the most unprofessional person with whom I have ever had to deal with for customer service. He tried to convince us that there was no such thing as a rate lock for mortgage refinancing. He said that the company had no responsibility to have in writing what was assured verbally. He stated that we would not receive our refund as the terms that we agreed to were as stated in the disclosure, something that is not true. He said the mortgage process is a process of trust and that we would just have to trust him that he would keep his word. After reading online that this company has a {$19.00} XXXX settlement with the CFPB for bait-and-switch tactics, I did not feel as though I could indeed trust this company to be a company of their word. 

I asked for the refinancing application to be canceled and to receive written verification of this immediately. I never received this confirmation as I still had people from Amerisave reaching out for underwriting documents. I contacted the loan originator for verification of the closure of my application only to never receive a response. 

I would like to have my {$500.00} application fee refunded as I paid the money under false pretenses of a fixed or float-down interest rate. This company clearly does not care to provide in writing what they are offering customers verbally, and I fear this tactic will only swindle other consumers unless stopped.

Company public response: Company believes the complaint is the result of a misunderstanding
Company response to consumer: Closed with explanation