Consumer complaint received 2019-08-17
Company: BROKER SOLUTIONS, INC.
State: CA
Product: Mortgage
Sub-product: FHA mortgage
Issue: Closing on a mortgage

Complaint:
I'm writing to report what seems like an unfair, deceptive business practice New American Funding engages in. I started the mortgage refinance process in XXXX  2019 with a loan office/consultant with XXXX XXXX from New American Funding. During the time, I provide the necessary information to determine if I was eligible and "pre-approved" for the refinance. After disclosing the information required to make a decision, I was informed that I was "pre-approved" for the refinance and at that time, I was told I didn't have to pay any cash at closing. That was the first time this was disclosed to me. Several weeks went by and was kept informed of the different stages of the loan approval process. Closer to the estimated closing date, I was still under the impression that I didn't need to pay anything at closing. I signed closing documents on XX/XX/2019. Prior to signing, I was told to write a post-dated check for JXX/XX/2019 made out to New American Funding in the amount of XXXX (this was the amount I was going to be refunded from my old mortgage company which was my escrow balance) My understanding for postdating this check to my new mortgage company was so that those funds can be placed into my new escrow account. I gladly wrote the check and the loan funded. XXXX XXXX came and went and the check was not cashed. I finally got an email from a XXXX  XXXX  - Staff Accountant on XX/XX/2019 that advised me that my "Escrow Advance Check" I postdated for XXXX  was being deposited onXX/XX/2019.  I responded the same day and asked to be cashed ASAP. I received a response saying that the check was going to be deposited on XX/XX/2019. Again, my assumption was the these were funds that were going to be deposited into my new escrow account. The funds eventually drafted from my account and I continued to monitor my mortgage account to verify the funds had posted. I noticed my escrow balance did not change so I decided to wait a few days. After 2 weeks I became concerned because there was no change to my escrow balance. I sent an email to XXXX XXXX (the Staff Accountant) inquiring about the missing funds on XX/XX/19. It appears she was out of the office so I waited a few more days. OnXX/XX/19, I decided to follow-up again. XXXX didn't bother to acknowledge my email appeared that she just decided to just "pass the buck" on to another representative who then reached out to me and acknowledged my request. I spoke to a XXXX with New American Funding to advised me in plain English that the funds I post dated were not deposited to my escrow account but they were actually used to pay for closing costs (I was given a figure of about $6,000 that were used to pay for closing costs and the balance was deposited into escrow) I was NEVER advised that any part of the escrow refund from my old mortgage company was going to be used for closing costs - on the contrary, I was always told I didn't need to bring anything to closing. Secondly, the request to post date the check was dubbed an "escrow advance" check according to email evidence. The representative from New American Funding apologized and advised me that there was nothing they could do and that they didn't know why the "sales" dept didn't advise me of such. I feel misled, deceived and lied to. This makes me question the business practices of this organization. This also brings into question the business conduct on the front end - it gives the perception of deceiving the consumer to lock them into a new mortgage and it should be investigated.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation