Consumer complaint received 2022-07-19
Company: JPMORGAN CHASE & CO.
State: NY
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
During the process of purchasing my Co-op apartment and obtaining a loan from JP Morgan Chase Bank through its home lending team, I was misguided and provided incorrect information causing an extremely difficult and unacceptable experience. In particular, I was given incorrect information and details and advised poorly by mortgage officer and loan processor regarding locking my interest rate, causing detrimental financial repercussions on my rate and payments going forward. Below are details regarding my case. 

I received my commitment letter by XX/XX/2022 ( when the interest rate was about 3.5 % ) and started my XXXX board application right away at that time. As I noticed rates rising then, I asked my mortgage officer ( home lending advisor ), XXXX XXXX about locking a rate numerous times since XXXX so that my monthly payments would not become unaffordable for me. During our phone calls, he responded that " rates are going up like crazy '' and stated more than once that the " right thing to do is to wait for board approval before locking a rate ''. The reason he provided not to lock a rate before was due to extension fees ( which he stated were .125 % for 30 days, and .125 % more for every additional 15 days ) as well as other unanticipated issues that may arise before closing. He did not clarify that it was .125 % of the loan amount or that it came out to less than {$290.00} for my loan amount ( of {$230000.00} ). Instead, he described these extension fees to be " a lot of money '' and said he was " trying to protect '' me from extension fees which are a " waste of money '', misleading me to believe his suggestion to lock rates would be in my best interest, When I asked regarding locking a rate early and possibly paying potential extension fees to given the market condition, he also asked me more than once " do you want to gamble '' and did not provide the information or numbers needed to be able to make an informed decision. 

I want to highlight particular examples both verbally and in writing which misled and deterred me from locking a rate below and provided me with incorrect information. 

On XX/XX/2022, the guarantor for my co-op board application ( and Chase Private Client ) went to Chase bank in XXXX, XXXX to deposit gift funds for my down payment. She asked XXXX XXXX, our mortgage officer there regarding locking rates soon due to the rising interest rate creating more challenging monthly payments for me, and XXXX replied that it should be done after board approval and depends on board approval. He also said otherwise there would be substantial fees to pay. 
My loan processor, XXXX XXXX emailed me on XX/XX/XXXX regarding an update with XXXX copied, and stated that after receiving board approval, obtaining insurance and completing my lien search, XXXX would then lock my rate. ( Please see email attached below ). " Now we just need for you to obtain board approval. Once you do, you will need to purchase your insurance and we will order your lien search. After that XXXX will lock in your rate, I will send you your initial closing disclosure and then we will receive the clear to close. '' This directly incorrectly informed me that rates get locked after board approval, similarly to XXXX 's message from numerous conversations indicating that would be the right thing to do. While XXXX was copied on this email, he did not respond and I never stated or agreed to lock a rate after board approval. 
On the evening of Tuesday, XX/XX/XXXX I called XXXX after reading and seeing on the news the Fed will almost certainly raise the rates in their meeting the next day and likely cause a spike in mortgage rates. I called as I was concerned and ready to lock a rate since I just submitted my co-op board package. I asked XXXX regarding information and numbers to be able to make an informed decision on whether I wanted to go ahead with a lock and if it would be worth the potential extension fees to me. I was not provided the numbers or information and was again told, like I had been multiple times that the right thing to do is to lock after receiving board approval. 

By the following week, rates went up substantially on the Chase mortgage rate website ( increasing by about 0.4 % to 0.5 % with XXXX point being purchased, since XX/XX/XXXX ). It became a very difficult situation for me with monthly costs becoming unaffordable and I dug and researched extension fees and mortgage calculators on my own since I did not receive figures or explanation of numbers or examples from XXXX. I then saw that the extension fee was only .125 % of the loan amount, totaling {$290.00} ( for 30 days ) and called XXXX on Thursday, XX/XX/XXXX to confirm this information. I urged him to provide the specific rates and points for 30 days and 45 days at that time. That was the first time the numbers were provided and explained to me despite asking for them a few times earlier. I also asked XXXX what his logic was previously for advising locking a rate after board approval. He stated it was because he did know rates would rise so much. However, this reasoning did not make sense as even a minor increase would make it worth paying extension fees and poor judgment was shown in stating the right time would be after board approval. After the call I calculated amounts and tried to understand all this information I just received. On Friday, I asked regarding rates and points again order to lock, but the rates went up again. XXXX also emailed me the mortgage calculator for the first time that day. As rates continued to rise with a slight drop early the following week on Tuesday, XX/XX/XXXX, I felt I had to lock my rate then before I could no longer afford my monthly payment. I locked at 4.15 % for XXXX points, though I was told this may not be possible as closing expenses could exceed 4 % of the loan amount, requiring a higher rate of 4.25 %. 

Throughout this process, I was misled, misguided and deterred from locking a rate since I initially asked about doing so in XXXX. The inadequate information and improper verbal and written guidance I received repeatedly was unacceptable. This has had substantial financial repercussions costing me tens of thousands of dollars and warrants financial reimbursement. 

I informed my mortgage officers manager, XXXX XXXX and escalated the case to the Chase Executive Office for a resolution and monetary reimbursement/credit. It was shocking and disappointing that the Chase executive team took no accountability for its employees ( loan processor and mortgage officers gross negligence and irresponsibility. Their reason they gave for not offering any monetary credit was because disclosures regarding rates were previously provided ). However, as stated I was provided with incorrect information both verbally and in writing after those disclosures. 

I appreciate you reviewing this closely and taking the appropriate actions against the home lender. Please feel free to reach me with any questions. 

Thank you.

Company response to consumer: Closed with explanation