Consumer complaint received 2017-04-10
Company: Skyline Financial Corp.
State: TX
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Settlement process and costs

Complaint:
Issue : Deceptive mortgage practices by Skyline Home Loans in conjunction with XXXX. 
We decided to build with XXXX in XXXX, TX. The XXXX Salesman, XXXX, pointed out the preferred lender is offering a {$5000.00} closing incentive and if we chose to go with them, we will not need to take the 3 % closing cost offered by XXXX. We took the offer to go with the builder 's preferred lender and did not elect the 3 % closing. It made a lot of sense at them time. However, It is very deceptive to home buyers because you voluntarily do not take the 3 % closing offered by XXXX only to find out later, the preferred lender will not pay the {$5000.00} closing incentive or the {$1000.00} best rate guarantee if they do not beat another lender 's interest rate. By that time, we were diligently trying to get the best terms and close on our new dream home. When we complained to XXXX, the builder pointed out we did not take the 3 % closing offered and they will have Skyline Home Loans contact us because the lender must honor the {$5000.00} closing incentive. However, Skyline Home Loans did not and we were bounced between XXXX and Skyline Home Loans until we had to go with another lender to close on our dream home. 
Background : I received the following emails from XXXX ( Skyline Home Loans ) : XX/XX/XXXX to follow up on home completion timeline. 
XX/XX/XXXX, stating XXXX 's switch to using Skyline Home Loans as the preferred lender will not affect the {$5000.00} incentive. They need updated bank statements, tax returns, XXXX, etc. We provided all requested info. 
XX/XX/XXXX, I received XXXX Delivery of Loan Application and Loan Estimate with other documents. The loan application only showed a {$2500.00} lender credit not {$5000.00}. 
XX/XX/XXXX, I sent an email citing the deficiencies regarding the higher interest rate/APR of 4.25 and 4.752 and section D did not contain the {$5000.00} closing incentive. 
XX/XX/XXXX, we spoke and I explained our credit union is offering a 3.87 Interest Rate and that based on their {$1000.00} best rate guarantee, they should match it and still offer the {$5000.00} incentive closing. I requested new documents to reflect the changes. He said sure, we can do it verbally. So I waited and waited to no avail on the new documents. 
XX/XX/XXXX, I received an email again stating the {$1000.00} best guarantee. I called and left XXXX a message reiterating the need for a new loan application to reflect the matched interest rate and {$5000.00} closing incentive. 
I never received the updated documents from Skyline Home loans or an explanation for not receiving the {$5000.00} or the {$1000.00} for the best interest rate. I did not hear anything else in writing after XX/XX/XXXX, only phone calls to say they are working on it. We had no other choice but to close with another lender in XX/XX/XXXX. 
I mentioned our experience with Skyline Home Loans to our neighbor who had the same experience. They did not receive the advertised {$5000.00} closing incentive either. I decided to file this claim because I visited XXXX for decorating inspiration only to see in XXXX, Skyline Home Loans is offering the {$5000.00} closing incentive. In our case, both Skyline Home Loans and XXXX share some responsibility in this deceptive practice as the builder who is advertising the preferred lender should have paid the 3 % closing if the preferred lender could not honor the advertised {$5000.00} closing incentive. 
I still have the loan application package which is void of the {$5000.00} closing incentive and the emails from Skyline Home Mortgage confirming all that is stated above.

Company response to consumer: Closed with explanation