Consumer complaint received 2020-09-21
Company: Ralis Services Corporation
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
I received my original LE with Rate Lock on XXXX 2.5 % with 0.25 % points, {$450000.00} Loan Amount and {$600000.00} Appraisal Value. The Total Closing Costs were {$1500.00} with ( D ) {$2400.00} + ( I ) {$590.00} - ( Lender Credits ) {$1400.00}. 

On XX/XX/XXXX, I received the Appraisal report valuing the property at {$550000.00}. Based on a phone conversation with the MLO XXXX ( NMLS # XXXX ), he informed me that I would need to bring additional cash to closing to reduce the LTV and keep the same pricing. I agreed to bring an additional $ XXXX to closing and reduce the Loan Amount to $ XXXX to keep the same pricing. Concurrently, I also asked XXXX to discuss with his Underwriting team to see if they would consider a Reconsideration or Value as the same 4-bedroom condo plan sold for {$560000.00} on XX/XX/XXXX and is currently estimated at {$580000.00} on XXXX, XXXX, etc. so I could leave the Loan Amount at {$450000.00}. 

XXXX called me back on XX/XX/XXXX and informed me that even though I agreed to bring in the additional {$10000.00}, the pricing had changed due to the LTV originally at 75 % and now at 80 % with {$440000.00} Loan Amount. I was upset to hear that loan cost had changed by {$1100.00} a week before closing and emailed XXXX to get the updated LE or CD and get my finances ready. 

On XX/XX/XXXX XXXXXXXX XXXX, I received my Closing Disclosure@ 2.5 % with 0.5 % points ( {$2200.00} ), {$440000.00} Loan Amount and {$550000.00} Appraisal Value. The Total Closing Costs were now {$2300.00} with ( D ) {$2200.00} + ( I ) {$180.00} - ( Lender Credits ) {$1400.00}. I signed the CD and  returned it to the lender and asked to change the closing date from XX/XX/XXXX to XX/XX/XXXX in order to organize my finances for the additional cost. The rate lock expiration is XX/XX/XXXX. 

On XX/XX/XXXX XXXX XXXX I emailed the Loan Processor and asked for a status update as I was kept in the dark since signing the CD. I just received an email back from the MLO at XXXXXXXX XXXX  stating the following : " XXXX your options are as follows. 2.5 rate costs you 1pt or you can get a 2.75 and pay only the .5pt fee. Let us know to you wish to proceed. '' Having worked in the financial industry for 15 years, I checked with my employer XXXX XXXXXXXX XXXX XXXX Director of Compliance who informed me that you should not be changing the pricing or loan cost once I've returned them a signed CD. I emailed XXXX back and asked for him to review with his compliance team and not change the pricing days before closing. 

The MLO informed me that he made an error in the property type and obtained a rate lock for a PUD,  rather than an attached condominium and that is why there was a change in pricing. I informed him that my application was submitted as a condominium and that even the Appraisal returned was listed as a condominium. He admitted that he made a mistake on his end however, I don't know if this was truly a mistake or a bait and switch attempt. The lender has already done a hard pull on my credit and because we had a rate lock, I stopped shopping with other lenders and focused my efforts on closing my loan with Owning.

Company response to consumer: Closed with explanation