Consumer complaint received 2020-05-23
Company: Comerica
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
I received a phone call from Branch Manager at Comerica telling me that the 30 YR is now at 3.25 % for 30 years for 80 % LTV. She told me I needed to act quickly because this offer will not last long. I went to her office and she called mortgage officer in Michigan to start the process. Mortgage consultant clearly stated that it is 3.25 % for 30 years with 80 % LTV. I went ahead and processed my application with her. Submitted all my documentations. I had no issues with income, my credit report, and Loan to Value. During the COVID-19 crisis, their appraisal cancelled on me and Comerica was going to charge me fees for extensions. I complained with them that it was not my fault, it was pandemic situation and finally they waived it. They hired a contractor to come  by to appraise my home. Mortgage consultant said it was going to cost me only XXXX not XXXX bec their other appraisal cancelled and that this company is a lot cheaper. I didn't have problem with that. They appraised value came out to be XXXX a lot lower which I didn't have a problem with that because I know banks appraise it a lot lower and I was still at 79 % Loan to value even with lower value. My goal was to consolidate my first {$350000.00} with home equity line {$150000.00} total XXXX and I'm still at 79 %. They clearly told me with 80 % I will get 3.25 % for 30 years. During the process no one communicated with me at all and then at the end of my underwriting completion, they emailed me with all these surprising closing disclosures that I was never communicated about. They are charging me over XXXX to get 3.25 % and increased my loan to XXXX instead of XXXX plus closing cost of XXXX. I went to Branch Manager 's  office before my application expired to check on my application, bec. I never heard from them. I wanted to know the status and mortgage consultant never said a word. The only thing she said do you want to cancel and start over. It was really confusing. I didn't understand what her point was to cancel. I had locked the rate for 3.25 % I didn't understand why she suggested me to cancel and apply again. They just threw all these fees at me after they completed the underwriting without explaining to me the tier rates for LTV. Both mortgage consultant and the processor left on vacation, my file got transferred to another mortgage consultant that's when she explained to me about the LTV tier rates. She said in order to get 3.25 % with no fee my LTV needed to be at 60 %. Branch manager knew my LTV was never at 60 % because I did my home equity line with her 6 months ago and my value came out to be XXXX at that time not XXXX. Comerica then offered me a 3.5 % for 30 Years instead with no points after I escalated to XXXX their manager about my complaint, He didn't support me and said there's still going to be a point fee even with 79 % LTV for 3.5 % the cost would be over XXXX. I feel I was taken advantage of and tricked into believing them. Every options that they provided had a point fees that was never disclosed to me in the beginning. They concealed all the important information until the end when I received the closing disclosure via DocuSign with all the high point fees of over XXXX They never said a word about the LTV tier rate until after they completed my underwriting. I feel I missed out on other lenders that were offering me better rate with clear communications and expectations. Now the rate is higher and I can't refinance. They never showed me any disclosures that shows the tire rates for LTV had to be 60 %. Even for 3.5 % they were charging me Points. Obviously I was mislead into believing that they had lower rate for 30 Years and all they wanted me to do was process a credit application that damaged my credit. 

The closing disclosures that I attached below was sent to me very much later after the underwriting process was completed. They verbally told me it was going to be 3.25 % with 80 % LTV. They never once mentioned anything about 60 % LTV.

Company response to consumer: Closed with explanation