Consumer complaint received 2016-12-27
Company: Allen Tate Mortgage Services
State: NC
Product: Mortgage
Sub-product: VA mortgage
Issue: Application, originator, mortgage broker

Complaint:
Summary : the Allen Tate Mortgage has a promotion called its " Best Rate Guarantee. '' This Promotion says that if Allen Tate Mortgage can not " meet or beat your offer from another lender, we 'll give you {$500.00} after closing. '' I tried to use this promotion because I secured financing from another lender, which Allen Tate Mortgage could not meet or beat, and later ( after closing ) a representative of Allen Tate Mortgage said I did not qualify for the promotion. I asked for additional detail about why I did not qualify and received only a brief response with no follow-up ( which was promised ). I think this promotion is designed so that it never has to be honored, and do n't think that is allowed in North Carolina. 

More Detail : My Allen Tate real estate ( buyer 's ) agent let me know about the Best Rate Guarantee and that is the primary reason I contacted Allen Tate Mortgage. I felt the Best Rate Guarantee was a good promotion : it gives Allen Tate Mortgage an opportunity to earn my business, and if they ca n't " meet or beat '' my best offer from another mortgage company, they provide {$500.00}. During the home-buying process I kept Allen Tate Mortgage aware of any developments in my financing, and provided all documentation per the Best Rate Guarantee promotion. I closed on my new home on XXXX/XXXX/16. On XXXX/XXXX/16 I asked Allen Tate Mortgage to honor the terms of the Best Rate Guarantee ( which, as of this writing, is still advertised at XXXX ). I received this response : " I apologize that I did not respond earlier. I had sent the request in and I can send you the wording on the Best Rate Guarantee offer. Because we do not offer that program, I am sorry but it does not qualify for the {$500.00}. If we had an investor that would do the VA loan according to your qualifications, the BRG would have applied. Due to the fact that we do n't, it is spelled out in the wording of the offering, that in your case it would not apply. I am so sorry. '' I asked for clarification, and did not receive a response. 

I researched the Best Rate Guarantee disclaimer provided on Allen Tate 's website ( since I did not get any additional detail from the Sr. Mortgage Consultant ). Per the following portion of the disclaimer : " Best Rate Guarantee is available on all loan programs that Allen Tate Mortgage offers for home purchase, with the exception of ... '' I meet none of the exceptions ( i.e. my loan was not a Jumbo loan, it was not new construction, it was not a bank CRA loan, etc. ). I then researched loan programs and found that my loan program- a 30-year VA Loan- is both very common and also offered by Allen Tate Mortgage ( see XXXX ). Per the guarantee, I secured a loan from another mortgage company, which Allen Tate Mortgage could not " meet or beat. '' This loan program ( VA Loan ) is offered by Allen Tate Mortgage. I also provided all required documentation for the Best Rate Guarantee. Allen Tate Mortgage apparently had a problem securing an investor for my potential loan- but that is not disclaimed on the promotion, and therefore should not be used to deny the benefits of the promotion. Unfortunately, it appears Allen Tate Mortgage can deny consumers the benefit of its Best Rate Guarantee promotion based on a very loose interpretation of the phrase " loan programs '' in the disclaimer. If that is the case, Allen Tate Mortgage apparently never has to honor the terms of the promotion, all the while using it as a prominent feature of their marketing. 

The Best Rate Guarantee can be found at XXXX

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with monetary relief