Consumer complaint received 2020-10-09
Company: GUARANTEED RATE INC.
State: FL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
Dear Customer Service Specialist, I am in a dispute resolution process on my XXXX   credit card account XXXX for the amount of {$680.00} paid to Guaranteed Rate Affinity on XXXX. 

This was requested by a predatory lender for an appraisal and application fee on a loan application that had not been processed and an appraisal that should not have been done at the time of the loan process. It was rushed to be done so that I would have to pay out the {$680.00}. We were just at the Purchase Offer stage, in which I had 15 days to get an inspection done on the property with a right of rescission. And during this stage is when I received this document asking for {$680.00} for an appraisal and application fee from XXXX XXXX the lender I was working with at Guaranteed Rate. I asked why I should pay for this up front and was told it was pay at closing. Please review the actual email trail where I was questioning the appraisal fee of {$680.00}. 

*****beginning of email On XX/XX/2020, at XXXX XXXX, XXXX XXXX wrote : why the increase? On quote outlining charges it shows XXXX From : XXXX XXXX XXXX Its the {$150.00} app fee also Then the rest will be paid at closing Sent from my XXXX From : XXXX XXXX XXXX Date : Wed XXXX XX/XX/2020 at XXXX XXXX  Subject : To : AnnaBanana XXXX okay so, I am paying this at closing and should ignore this invoice? 

*************end of email trail. 

This is when she just ignored my question as to why I am paying it now, but she did say it was part of the closing cost. The " {$150.00} is the app fee '' and " then the rest '', which is {$530.00}, " will be paid at closing ''. When I asked again why I should be paying it now by asking " okay so, I am paying this at closing and should ignore this invoice? ", she just ignored me. 

During the time of the inspection I noticed the XXXX  on the property had a major leak. The inspector asked the Seller to fix the XXXX. I went back two other times to this property and the XXXX  was not fixed properly. It was during this 15 day period that I informed XXXX XXXX XXXX loan officer @ Guaranteed Rate ) about the problem with the XXXX and there is a great probability that I will not buy this home. I asked her to hold off on the appraisal on XX/XX/2020 @ XXXX XXXX. She said the appraisal was ordered already and not sure if they went out yet. My loan was not even finalized yet! Again, we are in the 15 day right of rescission. I later now know that the order for an appraiser does not go out till a week or two before the closing date. She collect the costs on XXXX and the closing wasn't till XXXX Since I have gone through a legitimate loan process after recently purchasing a home I understand the correct way of how things are done. Appraisal costs are not due till the closing. It is part of the closing cost ( as XXXX herself has stated in the above email ). The lender does not order an appraisal till the purchase offer is final. 

I find that this XXXX XXXX XXXX to be predatory because she also had me put {$20000.00} in escrow during the Purchase offer which I found out is extremely high. I only put down XXXX on the home I just bought to give you a comparison. So, in asking for an appraisal fee and application fee for {$680.00} and having me put {$20000.00} in escrow, all before I had a chance to inspect the property seems that XXXX was trying to lock me in a home I wasnt sure I wanted or was worth me buying. 

To sum up, this really should not have happened at this stage. A loan officer or lender does not order an appraiser during the purchase offer stage. I had a grace period of 15 days to look over the property and make a decision to go forward or not. 


XXXX tried to lock me into a loan by having me put down costs and unreasonable amounts of money before my right to rescission period ended. Appraisal costs application fee {$680.00} are collected at closing not up front. And {$20000.00} in escrow is just unheard of!! I didnt know what I was doing and she took advantage of that. But, now I do know and I am going to report her to the FTC, XXXX  and the CFPB. I dont want anyone else to have to go through what I did with this person. 


Thank you for your time and consideration in this dispute. 


With regards, XXXX XXXX

Company response to consumer: Closed with explanation