Consumer complaint received 2023-07-29
Company: PROSPERITY BANCSHARES, INC.
State: TX
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
Around XX/XX/2021, i obtained a mortgage through Prosperity Bank to buy a new home ( House XXXX ). I chose this bank because i have used them for refinance before and felt i have a good working relationship with the loan XXXX, XXXX XXXX. 

Simultaneously, I was selling my old house ( House A ) to get the money to put down for the new purchase, House XXXX I have own XXXX other house before and have always obtain a 30 year fixed rate mortgage loan. So when i requested for a loan for House XXXX, I also told XXXX that i would like a 30 year fixed rate loan. This is also the only loan i'm familiar with and have heard about. Like most people, i don't have much knowledge about the different types of loans. 

Because of my lack of knowledge about different types of loans and not understanding everything that is in the fine prints, I like to talk to the loan XXXX over the phone to ask questions and/or confirm my understanding of a document. 

When XXXX informed me of the interest rate that she got for me ( 2.5 % ), i thought that was a very good rate and CONFIRMED with her that this is for a 30 year conventional. she said " yes ''. 

On the day of closing, which is XX/XX/2021, the closing XXXX asked me if i know that the loan rate only stays fixed for 10 years and after that it increases 2 % every year for the next 10 years> She told me this loan is called an " XXXX XXXX XXXX '' and that beginning month XXXX, my interest would go up 2 % and this happens annually for 10 year!! I was shock and very upset because i did NOT know this. I asked her to halt the closing process so i could call XXXX. I felt maybe XXXX made a mistake. 


Even the last time I spoke to XXXX, which was the day before to confirm the 30 year fix rate before I go to closing the next day, she said yes. The closing agent said i could call the loan XXXX, XXXX which i did. When i asked her why she lied to me and XXXX yes when i asked if it was a 30 year fixed rate, she said that she didnot and it was in the fine print. I was very upset at this point and asked to speak to her XXXX. XXXX refused multiple times to let me speak to the XXXX and at XXXX point she hung up on me. I kept calling back demanding to speak to the XXXX. She gave me multiple excuses like the XXXX is not there and then she finally put me on hold multiple times. Finally, XXXX said the XXXX would call me. 

A man name XXXX XXXX came on the phone and identify himself as the XXXX. I told him the situation and he said to me that Prosperity Bank does not carry the 30 year fix rate loan so they had to " farm it out ''. I told him that XXXX out right lied to me since i confirmed with her the type of loan i wanted. I expressed my concern about the end of 10 year on how am i going to afford a higher interest rate and closing cost. he told me that Prosperity has another program to help me refinance to a fixed rate and a flat closing charge. He made it sound reasonable but in my XXXX, i knew he was trying to appeased me. The phone number for XXXX XXXX XXXX is ( XXXX ) XXXX. 

At XXXX point during this closing, i was calling around to my real estate agent and other people i know to try and get a different loan. However, i was in a difficult place because i have already closed on my old home. the owner of House XXXX have already given me an extension because the buyer of House XXXX 's first loan fell through. I felt pressured to accept this loan because i didn't want to lose House XXXX. My children and I would not have a place to stay. consequently, i felt pressured to go ahead and sign for this mortgage that XXXX created. 

I have been very unhappy since and felt stressed and pressured to make extra payments every month to get the loan amount down before the 10 year. 

i would not even know to make this complaint except for the fact that i am taking a course to better educate myself on loans and found out that I have rights to complain.

Company response to consumer: Closed with explanation