Consumer complaint received 2018-03-28
Company: JPMORGAN CHASE & CO.
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
I closed on a refinance with JP Morgan Chase on XX/XX/XXXX. The loan was funded as expected, and I received a wire transfer for the cash I wanted to take out. In addition, there was roughly $ 31K in creditor checks that were to be sent via overnight mail to pay off my credit card debt. After a week passed and I hadnt received the checks, a mortgage banker at the Chase branch suggested I contact the title company ( XXXX XXXX ). Shortly after doing so, I received a frantic call from someone at Chase informing me they had made a clerical error and failed to record a HUD lien ( from a loan modification I had completed in XX/XX/XXXX) on the closing disclosure. She acknowledged they knew about it, and she was very surprised that it was not listed on the closing disclosure. Nonetheless, she assured me that between Chase and XXXX, they would come up with a resolution. This process and the communication between all parties started taking a while, and another billing cycle for my credit cards passed. Worried that I would continue to incur interest charges ( the very reason for refinancing my mortgage to a HIGHER interest rate than before ), I paid off all of my creditors myself. 

I requested to the Chase representative that the closing disclosure be revised, and $ XXXX that was designated for creditors should be used to pay off the $ XXXX HUD lien and the remainder should come to me. Otherwise, I wanted a recission of the loan due to this error. I was told that was not possible and that I needed to pay off the HUD lien and send them proof, and they would release the creditor checks to me. Since I had already paid off all of the creditors, I asked that they verify my credit card debt had a XXXX balance and send me the checks instead, and I would pay the lien. I was told they couldnt run a new credit report because over 30 days had elapsed and that I needed to send full statements for each account. Even though I sent online screen prints showing the most current information for each account, that was not accepted and I had to wait until I received full statements after the next closing date. 

Finally, on XX/XX/XXXX, I received the information on how to pay off the HUD lien ( i.e., payoff instructions, amount, copy of HUDs recorded lien, etc. ). I sent proof of payment along with the tracking number for the payment to both Chase and XXXX. I have also contacted the HUD contractor to whom payment was sent, and they have confirmed receipt of the payoff ( received XX/XX/XXXX ) as well as confirming they sent the lien release to the XXXX County Recorder. Yet, I still dont have my money from Chase. 

To date, I have incurred additional interest charges of {$280.00} ( by allowing another credit card cycle to pass waiting for creditor checks ) and paid {$14.00} in fees ( for cashiers check and priority mail w signature required ). In addition, Im about to make a SECOND payment on a mortgage that still isnt properly closed and funded ( i.e., theres still over $ XXXX I dont have but am paying interest on as part of my loan ). 

I refinanced my home and went from a 3.375 % interest rate to a 4.5 % interest rate for the sole purpose of paying off my credit card debt, eliminating PMI and taking out cash for home repairs. I have been unable to begin ANY home repairs because I paid off my credit card debt and the HUD lien that was not put on the closing disclosure. I had no choice but to pay off the credit card debt, because I couldnt afford to pay both my higher mortgage payment AND high interest credit cards each month. This entire process is having a negative impact on me financially when it was meant to result in monthly savings for me.

Company response to consumer: Closed with explanation