Consumer complaint received 2020-10-10
Company: AMERICAN FINANCING CORPORATION
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
Between XX/XX/2020 and XX/XX/2020, I tried to refinance my first mortgage with XXXX XXXX, XXXX XXXX XXXX XXXX # XXXX, XXXX, CO XXXX. My property is located in XXXX California. 
I have provided to American Financing all the information requested from me, and was very clear that I was applying for refinancing, not for purchasing a new property. To my surprise, American Financing sent me a Loan Estimate and disclosure documents for my signature, which were incorrect. For example : a/ American Financing insisted on charging me a transfer tax fee, even though I was trying to refinance an existing loan ( and I was clear that nobody would be added to/removed from the title ) ; b/ American Financing disclosure documents did not contain all required California-specific paperwork, e.g. I was not given the so-called California Domestic Partnership Addendum to Uniform Residential Loan Application ( some mortgage lenders refer to the document as a " Statement of Interest '' ) ; etc.

In addition, American Financing refused to lock-in the rate, even though I have provided all the information they wanted from me, e.g. permission to check my credit records and scores with all three Credit Reporting Bureaus, Social Security Number, date of birth, employment information, personal financial information, etc. The explanation I received was that my rate was as good as locked, because American Financing would not change the initial rate in ninety-something per cent of the applications. When I advised American Financing that verbal assurances are not as nearly reliable as documented ones, I was told that American Financing would only locks rates after my application receives underwriters ' approval. Having in mind that it takes time to obtain such an approval, and that the market changes daily, I believe that American Financing practice to lock the rates so late in the process hurts all of it customers.

The worst part, though, was that I was pressured both, by the loan officer I was working with, and later - by his manager, to sign the incorrect documents. I tried to explain several times ( verbally and by e-mails ) to both of them that I wanted to sign correct documents. Unfortunately, my requests were always met with pushes to sign the incorrect paperwork and explanations to the effect that either American Financing 's system was set up that way, or that at the time of closing the loan everything would be fine ( for information only, all of the mistakes were to my disadvantage, and one can not help, but ask him/herself - if American Financing plans to correct the mistakes, why don't they start by fixing the documents ). I even advised the loan officer and his manager that it is a federal crime to provide false information on a loan application, but to no avail. The loan officer eventually referred me to his manager, but all I got from the manager was condescending attitude ( he kept repeating that he had been working with mortgage loans for 20+ years, so he knew what he was doing ) and that American Financing and he were processing all applications by the book.

Since I am a law-abiding citizen, who does not want to commit a federal crime, I advised the American Financing 's manager, XXXX XXXX that I was forced to cease my application with his company due to American Financing 's illegal practice of coercing me into signing false documents. In addition, I asked the manager to retract American Financing 's credit inquiry about my record and scores. He refused, stating I had given American Financing permission to conduct the inquiry. I tried to explain that when I had given my permission I was not aware that American Financing would pressure me to do illegal things. Unfortunately, all I received was a denial and another doze of condescending lecturing how great the manager and his company were. 
In view of all of the above, I kindly ask the Consumer Financial Protection Bureau : a/ To investigate the illegal activities of American Financing to coerce customers into signing incorrect paperwork.

b/ To take whatever corrective measures the Bureau may deem necessary, if any, to stop the practice.

c/ To help me convince American Financing to retract its credit inquiry with the three Credit Bureaus , because when I gave my permission about the inquiry I had no indications I would be asked to do illegal things.

d/ To verify whether American Financing staff in XXXX , Colorado , have necessary knowledge and documents to process mortgage loans for properties in California . In addition, please check also American Financing 's mortgage loan processing computer system, because one of the arguments, when pushing me to sign false paperwork, was that American Financing system was set up in a certain way.

Thank you.

Company response to consumer: Closed with explanation