Consumer complaint received 2019-11-01
Company: Eagle Home Mortgage, LLC
State: FL
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Closing on a mortgage

Complaint:
Eagle Home Mortgage is completely taking advantage of first-time home buyers by not being timely and transparent with important information regarding the interest rate and mortgage payment as a result of the interest rate. 

When I was in the process of getting pre-qualified for the USDA loan, I specifically told the representative from Eagle Home Mortgage that I wanted around my payment to be around the low-to-mid $ 1600s. When he presented the cash-to-close to me when I was considering to purchase the house, he put it at a 4.25 % interest rate for USDA. I fought back on the interest rate because I went to competitor builders the same week, and I was being quoted 3.89 % based off my credit score. In addition, the house from the competitor was $ XXXX more expensive, had equivalent HOA + CDD fees combined, but is the same mortgage as what Eagle Home Mortgage quoted me. However, XXXX, the representative, said he was being honest with me and the other company was lying, and that if I get the interest rate around 3.8 %, then my payment would be where I want it to be. As a result, I purchased the house. 

I am aware that interest rates change, but throughout the past few months since I bought the house, I would ask my lender to check the interest rate and see what it is so I know what a realistic payment is, instead of the worst-case-scenario he advised me on. He kept refusing to look and said he won't even consider looking until the end of XX/XX/XXXX/beginning of XX/XX/XXXX ( the house closes in XX/XX/XXXX ). I wanted to know what I am getting offered from Eagle Home Mortgage since I have to use them to get all my closing costs paid. I wanted to know if their offer is competitive so I have time to shop around if need be and just put the closing costs in the mortgage, but since they kept delaying on telling me, I had nothing realistic to compare to to see if I'm honestly getting a fair deal. 

I am now less than 30 days from closing, and it took me constantly messaging the lender and my sale 's agent at XXXX to finally get Eagle Home Mortgage to disclose the rate today ( XX/XX/XXXX, closing is on XX/XX/XXXX ), and I was told that it was 4.12 % with the mortgage payment being {$1700.00}. He said that if I use the cash I get back at closing and they contribute {$2000.00}, I can get the interest rate to 3.8 %, but the payment would only be {$54.00} less. The lender then disclosed to me today that it would take a significant drop in interest rate to get the payment to where I want it to be, which I was completely upfront about to begin with. As a result, I am now in an extremely bad situation by that I lose {$2000.00} if I cancel the house, and I no longer have time to shop around with other lenders to get a lower interest rate without taking the risk of adding fees from XXXX if the outside loan is approved after the closing date. I did talk to another builder today, the same day Eagle Home Mortgage told me my interest rate, and with my credit score, I was told I can get a 3.625 % interest rate ( with no money required to buy down the rate ). It is appalling that two lenders can take the same credit score and same loan type, and come up with interest rates that differ by 0.6 %.

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