Consumer complaint received 2019-12-14
Company: Paramount GR Holdings, LLC
State: CO
Product: Mortgage
Sub-product: FHA mortgage
Issue: Struggling to pay mortgage

Complaint:
We opened a loan with LoanPal on XX/XX/XXXX. The loan was {$440000.00} with monthly payments of {$2200.00}. This loan was researched and presented to us by LoanPal for the amount listed above, and signed by us on XX/XX/XXXX. 

We started our monthly payments XX/XX/XXXX and have made the payments every month from XXXX through XXXX, and will be making the XXXX payment in the coming days. 

We reached out to our LoanPal loan processor, XXXX XXXX, XX/XX/XXXX, to let them know they made a mistake on the loan with the escrow and we were trying to correct it. We never received any response. We adjusted our payment to {$2700.00} a month as that amount was what was quoted to us by one of the loan associates assigned to our loan when it was created, and we believed that it was the correct monthly amount to keep the loan current and correct. LoanPal reworked our loan without our approval in XXXX and changed the monthly payment statement to {$3000.00}, a {$790.00} monthly increase difference, {$250.00} higher than it should have been, with no explanation as to where the extra difference was going. If this information was given to us when we signed the loan, we would have chosen to do business with another company, as that monthly amount would have been much higher than other comparable mortgage lenders. LoanPal apparently operates under multiple company banners including Paramount, XXXXXXXX, so many DBA, hard to say which company this truly is. A quick check on XXXX   shows multiple complaints of similar errors and customer complaints by LoanPal. 

LoanPal now reported our account as missing a payment on our credit report. We have all payments accounted for, and received by LoanPal for every month. We reached out to them again, and their explanation was that they did a Tax Assessment and the monthly payment is the monthly payment, and if we pay them XX amount, we will be current. The problem, there is no missing payment, and the payment would only be the current payment due. The whole process has been very questionable from the start, having never talked to any LoanPal person in person, all done through email and XXXX documents, with the only person we ever interacted with was the Notary Public sent with the final paperwork for us to sign. It's very fishy and I would say a bait and switch for this loan. 

Calling LoanPal, no person would talk with us with the error we found, and told us to submit our issue to their website. This is terrible customer service. The original loan amount was correct, but the property taxes were never researched and the error on the loan occurred because of their lack of research for the taxes. We did not create this loan, it was done by LoanPal, and presented to us as accurate and complete. 

We have disputed through our credit agencies for the missing payment, and expect it to be corrected, but our credit took a massive hit, and as such, we can not refinance with another credible lender until corrected. 

Our suggestion, do not do business with this company. They show a lack of accuracy and very poor customer service, and very questionable business practices. 

Our resolution to this is a correction by LoanPal both to our credit, and to the monthly payment and apply the funds accordingly, along with a corrected loan contract showing all the amounts.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation