Consumer complaint received 2020-03-17
Company: AMERISAVE MORTGAGE CORPORATION
State: FL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
Lender locked my interest rate while refinance rates were low, then 4 days later when mortgage interest rates went up, they cancelled my loan! 
I had been keeping track of interest rates for weeks and when they hit what I believed to be their low point, I began shopping rates with various mortgage brokers/lenders. On Saturday, XX/XX/20 at approximately XXXX XXXX  EST, I began a phone call with an Amerisave loan originator ( NMLS ID # XXXX ). After approximately an hour and a half phone call, we had come to terms on a refinance rate of 3 %, with {$3900.00} in lender points charged, and a {$750.00} lender credit. I signed and and " acknowledged '' a loan estimate and disclosures. I paid a {$500.00} deposit to confirm my intent to pursue this loan and committed to using Amerisave. Since Amerisave system does not send you copies of documents you sign, I had requested confirmation that my rate had in fact been locked. I received email confirmation that my rate had been locked from NMLS ID # XXXX at approximately XXXX XXXX   EST onXX/XX/20. By Monday, XX/XX/20 at XXXX XXXX  EST, after submitting a number of requested documents though the Amerisave web portaI, I received an email stating that my appraisal had been scheduled and requesting me to contact my appraiser to coordinate his sight visit, which I did. On Tuesday, XX/XX/20, at XXXX XXXX  EST, I received an email from Amerisave stating that my Loan disclosure had been " updated '', and to log in to view them. When I logged in to access the new disclosures, I saw that they had increased the points to {$5800.00} for my rate. I immediately emailed NMLS ID # XXXX to get it corrected. He apologized and said he would reach out to his disclosure department to get fixed and it would be sent later that day. The corrected disclosure never came. On Wednesday afternoon, XX/XX/20 at XXXX XXXX  EST, the appraiser arrived at my home to perform his on site portion of the appraisal report. Later that same evening, I received a call from the appraiser at approximately XXXX XXXX  EST, informing me that he had received a message from the lender that the appraisal had been cancelled, and asked me what I knew about it. I immediately called NMLS ID # XXXX and was transferred to his supervisor who informed me my loan application was being cancelled because Amerisave ( a direct lender ) could " no longer give me the rate and pricing '' that was agreed to, and locked in the prior Saturday. This call occurred after close of business on Wednesday, XX/XX/20, after 3 straight days of huge mortgage rate increases across the industry ( Mon XX/XX/XXXX, Tues XX/XX/XXXX, & Wed XX/XX/XXXX ). Again, I did NOT float the rate, I locked it - and my loan application was not rejected or declined, it was simply canceled. Time was of the essence, which is why I was shopping rates on a Saturday, to begin with. I was speaking with several other lenders on that Saturday who offered very comparable rates, and now I have lost out on the chance to lock in a comparable rate from other lenders. This incident has cost me an untold amount of money but I estimate it would cost me at least {$10000.00} to lock in a comparable rate now, based on a few quotes I've received since my loan was cancelled. I went on social media to share my experience with others and when I did, I learned that Amerisave has done this same thing to many other applicants who applied around the same time I did, which suggests a pattern of widespread malpractice. I have copies of all emails, and loan disclosures and loan estimates. Amerisave also records calls, which could be subpoenaed. The supervisor indicated I would receive a refund for my deposit ( I still haven't been refunded as of XX/XX/20 ), but I explained that simply refunding my deposit would not make me whole. As stated, I am out thousands and thousands of dollars because Amerisave reneged on my rate lock. I'm not sure what the point of locking a rate is, if a lender can just decide they don't want to honor it. This means I ( the consumer ) have no protection against the lender changing my rate, or cancelling my rate ( as in this case ) just because rates went up and it's no longer in their interest. As a very strong borrower, I should have had no issues obtaining a refi loan based on my situation, and Amerisave simply reneged on the rate they promised to offer me. I have requested copies of all docs I submitted as well as all docs I signed as part my loan application, but have heard no response. I do have copies of all disclosures, indicating loan estimates showing rate had been locked. 

I am requesting Amerisave to either : 1 ) reinstate my loan application at the rate/terms promised and make every effort to close my loan as they would any other loan, or 2 ) Reimburse me for a {$500.00} deposit paid plus the difference in pricing between the {$3200.00} price quoted for my chosen rate by Amerisave, and the new cost for the same rate from another lender.

Company public response: Company believes complaint represents an opportunity for improvement to better serve consumers
Company response to consumer: Closed with monetary relief