Consumer complaint received 2019-10-24
Company: Cstone Mortgage Inc
State: WA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
People Involved Realtor - XXXX XXXX Loan Officer - XXXX XXXX, Cornerstone Mortgage Cornerstone Mortgae aka Cstone Mortgage XXXX XXXX XXXX XXXX XXXX # XXXX XXXX XXXX, CA XXXX XXXX Buyer- XXXX XXXX Loan numberXXXX ( Sellers-XXXX   and XXXX XXXX Owners of Cornerstone Mortgage - XXXX XXXX , Executive Vice President of Cornerstone Mortgage Lead Loan Officer of Cornerstone Mortgage ( attempted phone calls during process ) XXXX XXXX , Administrative Assistant / Secretary of Cornerstone Mortgage Timeline of Transaction XX/XX/XXXX - Advised Realtor that we had learned that we had learned from my Bank ( XXXX XXXX XXXX ) that could get a re-cast loan which would allow me to purchase a home now with 10 - 20 % down and then apply additional principal to the balance once we sold our current home to lower our payments. Discussed several homes that we wanted to see. 

XX/XX/XXXX Met XXXX at the property Advised XXXX that we wanted to make offer on XXXX XXXX XXXX XXXX XXXX asked if we could prepare and submit the offer via the internet, to which we agreed. 
XXXX advised that she did not like working with big banks as they often couldnt close on time and were difficult to work with. XXXX assured as that virtually all lenders were doing recast loans and that we did not need to finance at XXXX to get that type of loan. XXXX gave us a list of three Lenders that she preferred to work with, XXXX XXXX, Cornerstone, being at the top of the list ( the other two being with XXXX XXXX which I read had bought out Cornerstone ). While driving from XXXX to XXXX XXXX, I spoke at length with XXXX XXXX, advising him of our financing concerns, primarily getting a 10 - 20 % down loan with a recast feature so that we could add principle to the balance at a later time without having to refinance the loan. I provided XXXX with information regarding my assets and income so that he could provide a PreApproval letter to XXXX. XXXX assured me verbally that I was qualified to purchase a home for {$380000.00} with 10 % down. I have absolutely perfect credit, excellent income reserves and the property was a conforming property in excellent condition. 


XX/XX/XXXX Applied online for the loan with XXXX at Cornerstone Mortgage and provided him electronic verification of all assets, income and liabilities. Received a copy of a preapproval letter from XXXX. 
Briefly went over the electronic offer with XXXX. She did not bring up or discuss the waiver of financing or any of its ramifications. XXXX submitted the offer to the sellers, which was accepted. 

Over the next several days, I repeatedly asked XXXX for the GFE / disclosures, however those were not provided to me until XX/XX/XXXX ( in violation of the rules requiring lenders to provide this documentation within 3 days of loan application while I was out of town for MD appointments. Shocked at some of the fees and rates that were quoted, I began a dialogue with XXXX XXXX and my Realtor, which is documented in the attached emails and texts. Basically XXXX went thru a bunch of bait and switch scenarios on rates from the beginning, failed to provide the type of recast loan that I requested from the onset, could not provide reasonable documents pertaining to a float down rate, ( see documentation ). 

I tried repeatedly over the next several days to rectify this situation, resulting in more cheating / lying rate scamming on XX/XX/XXXX, with XXXX ultimately flat out lying on XX/XX/XXXX, claiming that I had never discussed a recast loan with him. By this time, I had lost all confidence in XXXX and Cstone Mortgage, and was not confident that I could proceed to closing and find the recast loan I wanted and at a competitive rate that I was entitled to given my excellent credit, substantial reserves and conforming property in excellent condition. Therefore I had to withdraw my loan. Because we were now less than a month from closing, it was not possible for me to start with another lender. I believe that Cstone intentionally drug their feet, violated the law, and used every scam in the Mortgage Lenders Cheat book to try to bilk me out of money by dragging me into a situation where I had no out, but to go with them and their overpriced, uncompetitive products which were not what I had requested at the outset, and that were assured to me by XXXX XXXX. 

During this process and afterward, I tried unsuccessfully to reach help from within the company. See email documentation with XXXX XXXX ( in effort to contact owners ), as well as email and text documents with XXXX XXXX, all of whom promised to look into this and try to assist me, to no avail. 
Ultimately, I lost my {$5000.00} earnest money, and incurred expenses of over {$500.00} in inspection fees and travel costs. I also lost the home of my dreams and will now likely have to move twice, once our home sells, incurring additional moving and travel costs. I am requesting that Cstone Mortgage refund to me the hard costs of {$5500.00} and I will not pursue them further legally. If they are unwilling to do so, I will pursue other options.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with non-monetary relief