Consumer complaint received 2016-11-28
Company: WEICHERT FINANCIAL SERVICES
State: NJ
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
We purchased a new home located at XXXX, NJ before selling our old home. We put 10 % down with a 30-year fixed rate conventional mortgage with 3.875 interest rate. We applied for and received this mortgage from XXXX of Weichert Financial Services with the express understanding from him that at the time we sold our home, we would be able to use the sales proceeds to immediately pay down the mortgage on our new home, get rid of the PMI, and take over our own escrow. We asked about this numerous times, both on the telephone, texts, and I have emails between me and the mortgage broker where he assures us that this can be done right away ( and in fact that Weichert was retaining our loan so that this could be done ). We even asked the buyers of our former home to use Weichert Financial for their mortgage on the purchase of our former home ( which they did ) so that this transaction could be seamless and we could apply the proceeds to our new mortgage right away. We closed on our new home on XX/XX/2016 and closed on the sale of our former home on XX/XX/2016. When I contacted XXXX of Weichert to pay down the loan, remove PMI and escrows, he now informs me that this can not be done. He informed me that I would have to make XXXX payments on the mortgage before I could even apply to lower the payment and infuse the money into the mortgage. He made no mention of not being able to get rid of PMI. I contacted corporate at Weichert Financial Services and will attach the paperwork. I spoke to XXXX, who informed me that they can not lower the payment or get rid of the PMI. She was surprised XXXX also did not tell me about the PMI. After her email on this issue, no one is getting back to me now. I have even asked for the name of their legal counsel/legal department -- no response. I have also written to XXXX, the Senior Vice President of Weichert Financial ( see attached ). In sum, we were clearly induced into entering into a mortgage under false pretenses and misrepresentations. We are asking that Weichert Financial immediately accept the pay down on the mortgage, lower the payment, remove the PMI and release the escrow so that we can pay our own taxes and homeowners insurance -- all as promised to us MULTIPLE TIMES. These representations were also made in front of my husband and the Weichert Realtor that we used, XXXX. There is absolutely no way that XXXX can deny the misrepresentations that he made to us, which we relied on to our detriment. Moreover, once we infuse the mortgage with our sales proceeds of {$170000.00} to {$200000.00}, the loan to value ratio will be about 61 % which is more than enough to remove the PMI. We have already made the first mortgage payment due on XX/XX/2016. We are out thousands of dollars in interest and PMI payments which are totally unnecessary. Had XXXX not lied to us, I could have easily borrowed the funds from my family to put down on the mortgage until my former house closed. My contact information is XXXX. I am the purchaser of XXXX, NJ XXXX, Loan Number XXXX, together with my husband XXXX. I can be reached at XXXX, or at XXXX. My real estate attorney was XXXX, Esq., whose number is XXXX XXXX XXXX. Thank you. The part of mortgage process has to do with applying for the loan, the loan servicing and the false representations made to us.

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