Consumer complaint received 2017-01-19
Company: JPMORGAN CHASE & CO.
State: OH
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Settlement process and costs

Complaint:
description I have been working with JP Morgan Chase Bank since XX/XX/XXXX to secure a home mortgage. When I first spoke with the mortgage banker ( XXXX XXXX XXXX XXXX ext XXXX ), we entered into a contract to have an interest rate of 3.25 %, an APR 3.459 %, and PMI costs would be {$100.00} per month ( rounded to {$100.00} on our loan estimate ). These were the numbers that have been communicated to me XX/XX/XXXX and XX/XX/XXXX up until a two days prior to our closing date, which was XX/XX/XXXX. After our house appraisal came back XX/XX/XXXX, it was a lower value than what I am purchasing the house for. As a result, the loan changed from a 90 % loan to value to 95 % loan to value. I was repeatedly told by the client care specialist, XXXX XXXX XXXX ext XXXX, that our PMI would only change by a couple dollars as a result of this change and that it would not be more than {$110.00} per month. I was told that the PMI would not increase drastically. I have been in constant communication with XXXX XXXX and the mortgage banker due to continuous problems with the loan conditions. A new issue was brought to my attention ( TWO days before I was scheduled to close on my new house ). XXXX XXXX sent me the closing disclosures, which showed that the PMI was increased to approximately {$190.00} per month. I immediately contacted XXXX XXXX as well as the mortgage banker and their supervisors to determine why this kind of error could occur. I was informed that their " hands are tied '' because they use a third party mortgage insurance company who determines what the PMI rate will be for the loan and that I would either need to accept the terms as is and sign the closing documents or walk away from purchasing the home two days before closing date. The client care XXXX stated to me that " there was no way to have foreseen this change '' although they knew on XX/XX/XXXX that the loan conditions changed and did not disclose this information to me. She then stated that they did not know this information until that day ( XX/XX/XXXX ) when they received the PMI certificate from the agency. The client care specialist informed me that the figure given to me XX/XX/XXXX and XX/XX/XXXX were their " best guesses '' as to what the PMI would be. Although, this information was delivered to me consistently in a fashion that was matter of fact and that it would definitely not be more than {$110.00} per month. After constant reassurance that this would be the case, I was blown away to find that my PMI rate is now almost DOUBLE what they were telling me it would be. There has been no resolution. The mortgage banker, the client care specialist, as well as their supervisors would not return phone calls and this issue has been left unresolved. I have since closed on the house because I had no other option. My house had been sold and I could not back out of the deal. I explained to them that they forced me to sign the closing documents under duress with no other choice unless I was to be left homeless. They reassured me that I could continue to work with them on resolving this issue after the closing date. However, I am now paying almost double the amount of PMI because of their false advertising and failure to rectify the matter. I attempted to escalate the issues I was experiencing on multiple occasions with various supervisors ( XXXX XXXX XXXX and XXXX XXXX ) on XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX ( to name a few ). I requested that my PMI payment be adjusted to the amount that they had consistently quoted me ( $ XXXX/month ) or provide me with compensation in the amount of {$9000.00}, which is the amount that I am spending in overcharges for PMI over an 8 year period. They informed me XX/XX/XXXX that they will not resolve this issue as requested.

Company response to consumer: Closed with explanation