Consumer complaint received 2020-03-21
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: TX
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
On XX/XX/XXXX, I spoke with a Bank of America Loan Officer, XXXX XXXX for our Mortgage refinance application for which an online application was submitted. A Closing cost worksheet was provided for an interest rate of 3.5 %. I received the copy pasted email below from the loan  officer : It was a pleasure speaking with you this morning! I have attached a closing cost worksheet at 3.5 % for your review. Keep in mind, this worksheet is without any pricing exceptions. If you are able to offer an email in your writing with a quote from a competing lender, I may be able to knock off some of those points. The escrow estimate, I just kept the same as what my system was quoting ( so this may be off a bit ). The collection for the new escrow account should balance and wash with the money you have in the current escrow account at closing. 

On XX/XX/XXXX, I sent the email shown below to the loan  officer : It looks like you are one of our top 3 choices to work with. As we plan to select our lender and lock our rate by Monday or Tuesday, we would like to compare rates, APRs and closing costs for Monday, XX/XX/XXXX. 

It seems like rates have gone down a bit last Friday and XXXX is now advertising 3.25 % for one point, kindly provide us with two  Loan Estimates for a rate of 3.25 % and 3.5 %. Please include the actual escrow deposit that you will require for closing and any closing cost reductions that can still be made from the Loan Estimate you sent last Friday. 

All the lenders we spoke with are offering to beat everyone else so, just to be fair to all, we decided to just go with who can provide the best deal for Monday. 

On XX/XX/XXXX, a Loan Estimate with an interest rate of 3.25 %, 0.387 points and 3.384 % APR was provided by Bank of America. On the afternoon of the same date, I confirmed via email that the rate, points and APR have not changed during the day. The loan  officer, XXXX XXXX, confirmed that nothing has changed during the course of the day and I requested to have the rate locked on the same email thread. On the same date, at around XXXX, the rate lock was confirmed over the phone by the loan officer, where he asked for and confirmed some more information to officially lock the rate and proceed with the application. 

On XX/XX/XXXX, Bank of America uploaded disclosures and documents for our review on the home loan navigator website. In good faith, believing that the agreed upon rate, points and APR shown on the Loan Estimate was already locked, we reviewed these disclosures and submitted the required documents being requested. Upon further review of the loan details on the website, I noticed that the agreed upon Loan Estimate with an interest rate of 3.25 %, 0.387 points and 3.384 % APR was revised and the website was showing an interest rate of 3.25 % but the points was increased to 1.887 % and the APR increased to 3.605 %. Still believing that this was just an error on the part of the lender, I emailed the loan officer but did not get a response on the same day. 

On XX/XX/XXXX, I uploaded more required documents on the home loan navigator website. It was then that a revised Loan Estimate showing an interest rate of 3.25 %, 1.887 % points and 3.605 % APR was uploaded on the home loan navigator website. The loan officer sent a secure message copy pasted below : In terms of the pricing, I will need to you provide the quote from XXXX so that I can apply the pricing exception. Very similar to what you already provided. In your email, please state the points, the rate, the term, and the mortgage company. 
Example : XXXX 15  Year Fixed loan at 3.5 % with 0 points. 

I called the loan officer to clarify this and was advised that Bank of America changed the policy and that the agreed upon rate, points and APR can no longer be offered. I felt that it was betrayal of trust but as the rates were already rising during that time and to avoid going through the entire process of calling and emailing and providing all the necessary information to a different lender again, I decided to just continue with the Bank of America application even if my wife and I felt that we were manipulated. 
We eventually closed the refinance deal with Bank of America for {$320000.00} on XX/XX/XXXX at an interest rate of 3.25 %, paying 1.137 % points plus {$1200.00} origination fee and 3.493 % APR. 

Is there a way we can recoup the cost of the additional points charged to us after we locked the rate on XX/XX/XXXX ( interest rate of 3.25 %, 0.387 points and 3.384 % APR )? Please let us know as we feel so helpless. Thank you so much. 

XXXX XXXX Email : XXXX Cel # XXXX XXXX XXXX

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