Consumer complaint received 2021-04-24
Company: GUARANTEED RATE INC.
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
We began a refinance transaction with Owning on XX/XX/XXXX. Everything went well, I submitted all of the documents that were requested, and our loan was approved. We signed loan docs on XX/XX/XXXX. On XX/XX/XXXX, our loan processor informed me that our loan was " cleared to fund today. We should have it funded within 5-7 business days. '' When nothing happened, we asked our processor for an update on XX/XX/XXXX. That's when the trouble began. We were informed by our processor that " our company is in the middle of a merger with Guaranteed Rate was in the middle of a merger with Guaranteed Rate, '' and that " we could see a delay in funding to around the first week of XXXX. '' On the same date, we asked if there was " any chance whatsoever that the company will back out of this commitment? '' The reply from our processor was " No the merger is already set in stone from what I am told. Its just a matter of converting our systems to match theirs. Im told it should be XX/XX/XXXX when that takes place. The reason being is that our lending line is capped until we can free existing mortgages we have funded. I have asked my manager to put you in the priority queue for funding. Should have an answer in a couple hours. '' On XX/XX/XXXX we asked ", is there any chance the file will be re-underwritten or is the approval firm? Is the only issue when you will have sufficient funds to record the loan or is there more we should be concerned with? Any update today about a recording date? '' The reply was " Owning is simply becoming an independent arm ( DBA ) of Guaranteed rate. They just offer us more buying power in the market. Nothing will change about our approvals/process. If you do decide to reapply with us under Guaranteed rate, the most we may need is updated paystubs. '' Further, on again on XX/XX/XXXX, we were told " You are already cleared for funding which means your in the priority funding Queue. If you choose to have your loan funded instead of reapply, nothing more is required from you. '' However, also on XX/XX/XXXX, our processor casually mentioned that if we reapplied through Guaranteed Rate, the funding might come more quickly, and " Nothing will change about our approvals/process. If you do decide to reapply with us under Guaranteed rate, the most we may need is updated paystubs. '' we decided to re-apply through Guaranteed Rate, and as you will see, the above proved to be untrue. 

I believe that the loan documents we signed called for a rate of 2.625 % and 1/4 point cost ; it might have been 1/2 pt. cost. On XX/XX/XXXX our loan officer said if we resigned with Guaranteed Rate, our rate would go to 2.375 % and 1/4 pt. On XX/XX/XXXX, all costs to us were eliminated. On XXXX XXXX, our processor told us " We will extend your lock at our cost 100 %, we want to complete the process ASAP. We have an incentive to have you sign by the 8th so we are pushing hard for it. '' Now please remember that on XX/XX/XXXX were told that no further documentation other than updated paystubs would be required for funding with Guaranteed Rate. However, on XX/XX/XXXX, we received a conditional loan approval asking for more documentation. This has continued to the present day ; they keep asking for more, we provide what they ask, and still no answer as to funding! When we inquired as to why, our processor said " the underwriters here are more rigid than ours. '' This after we were told no further documentation would be required. Nonetheless, we have promptly supplied whatever has been asked. At some point around the middle of XXXX ( sorry but I can't find the exact date ) in exasperation over the delay, we said we would accept the terms of the loan documents that we had signed on XX/XX/XXXX, because it is still a significant savings over our current payment. No reply to this request was ever received. Again reminding you that I have in writing that no further documentation would be required, on XX/XX/XXXX, I received a request for further documentation and we promptly provided all that was asked. Our processor said that he would be " submitting today for review. '' When we asked how long this would take, we were told " Usually 24-72 hours. '' Of course, we heard nothing. On XX/XX/XXXX, we asked the processor why we had received no response concerning loan documents, our processor replied " the head underwriter confirmed he is looking at your loan today. '' We heard nothing. On XX/XX/XXXX, I wrote to the processor and loan officer asking what was going on? I also called the loan officer that day and literally screamed at her for the approximately 4 months this transaction has now taken, a loan that should have close by XX/XX/XXXX, She said she would speak to the underwriter and get back to me. She did, and said that, although she could not promise anything, we should hear something by late afternoon on XX/XX/XXXX. If you have read this far, you should be able to discern that we are still waiting for that communication. We have finally had enough and are submitting this complaint.

Company response to consumer: Closed with explanation