Consumer complaint received 2017-11-02
Company: United Shore Financial Services, LLC
State: MN
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Closing on a mortgage

Complaint:
After six months of repeated and redundant financial review by XXXX XXXXXXXX XXXX and its XXXX XXXX, XXXX XXXX XXXX, On XXXX XXXX, XXXX my XXXX XXXX loan was paid off by XXXX. The email I wrote when I received my loan statement from XXXX summarizes what transpired. 

" Attached is the mortgage and payoff statement from XXXX XXXX. On XXXX XXXX transferred {$730000.00} even though the balance was actually {$730000.00} for a difference of {$3400.00}. ( As you will see, I also paid {$4000.00} on the previous directly to principal, but most likely XXXX convinced XXXX XXXX to not credit the balance ). 

At least XXXX XXXX, despite its recent reputation, was honest and put the over-payment of {$4900.00} into escrow. However, XXXX left the excess payment in place and then chose to -- without authorization or communication -- decided on their own to conveniently round up the loan to a nice even {$740000.00} adding another {$2000.00} to the loan. 

Now I have a higher mortgage than I needed by at least {$5400.00}, plus I am also " borrowing '' {$2000.00} and paying interest on money I never received, owed or asked for. As you will recall, I paid every single nickel of closing fees up-front, by wire in the amount of nearly {$11000.00}, including paying for the appraisal. This {$2000.00} is NOT additional fees. 

What is this game? XXXX knew exactly what the balance was before paying the XXXX XXXX loan. '' To this email I got no response. 

But that unfortunately is n't the only trick XXXX has in their bag. In less than 24 hours before actually closing the loan ( and amazingly, within less than a week of the rate lock expiring because this started in XXXX ), I got a new closing " estimate '' demanding an additional {$3000.00} in fess. " Why the extra fees? ", I asked. Because, I was told by XXXX from XXXX XXXX Mortgage, that the rations are suddenly not quite working by some tiny percentage so XXXX needs more money to guarantee the rate. Normally, you 'd have a few options such as paying down the loan itself or changing the terms to avoid the points and fees, etc. But darned if we are n't out of time. 

I tell XXXX from XXXX bluntly, " You all need to get your paperwork in order before I sign or wire anything. The payoff number you are using is off by a significant amount. And I am NOT wiring another {$3000.00}. '' Then XXXX reminds me of the amazing benefits of this mortgage, etc,. to which I again reply " Get rid of the extra {$3000.00}. '' I show him my rate lock agreement from XXXX with the points noted. Then there are back-and-forth emails where I tell him to figure out how that {$3000.00} goes away, or I am signing the document to cancel the mortgage. 

Eventually, they come back with a proposal to absorb all but {$500.00} of it -- supposedly XXXX will take {$1200.00} and XXXX will take {$1200.00}. Or that is what I am told, anyway. Rather than keep going around on this thing, I reluctantly agree but make this statement to XXXX at XXXX on XXXX XXXX. 

" There is no doubt in my mind that I am being purposely worked by XXXX. It is fairly amazing that it has taken not only this long, but that have of course pushed it all the way so that the lock will expire, thereby placing extra pressure. Then we have the " Oh, by the way, you owe us another {$3000.00} '' coming in at the last minute because the supposed loan-to-value ratio is off by some miniscule fraction ( despite six months of review ) and, of course, now that time is up, I am left with not option to pay the extra {$3000.00}. Honestly I feel like reporting them to the attorney general. '' I did report them. But what they are doing is completely dishonest and, I would assume, illegal. You can not give someone an estimate of closing and then simply independently decide to up the loan and keep the money. I know what they do : They bait people with low rates but then figure out how to up the fees and loan values to actually dupe you into thinking you are getting an incredible deal. That 's slimy and needs to be stopped. 

I hope you fine the XXXX out of them. I am attaching documents but have many more should you choose to investigate it.

Company response to consumer: Closed with explanation