Consumer complaint received 2022-06-08
Company: AMA Advisors, LLC.
State: WA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
I have been working with the company in question to finance a potential house purchase for some time now - originally reached out to them XXXX, and then again in XXXX after taking a short break from house searching. In XX/XX/XXXX, I completed underwritten pre-approval for a {>= $1,000,000} purchase price with the same company, but was not able to lock in a rate until I went under contract for a property. 

After finally going under contract for a house ( {$970000.00} purchase price ), I was given a rate lock for for 4.375 % with 0.245 % points on XX/XX/XXXX. However, on XX/XX/XXXX I was suddenly told that I do not meet minimum tradeline requirements for the loan program the originator chose, and would need to re-lock in at 5.625 % with 0.533 % points, an increase of 1.25 % in interest and resulting in $ XXXXmonth increase in mortgage payments. 

When I inquired why that would be the case given that 1 ) I had already been underwritten pre-approved for a much lower rate, 2 ) that the loan product type ( 30 year fixed ) has remained the same, and XXXX ) that my financial circumstances have not changed, the loan originator working with me told me I had actually been pre-approved with a different loan program, and that she had switched them for the rate lock. 

However, I was never made aware that the rate lock was dependent on the loan program, and there is nowhere on the rate lock document that clearly states that is the case, only that the rate lock is with the loan origination company. I was also never made aware that the program the originator chose is different from the one I was pre-approved with. Additionally, I feel that the loan originator did not do proper due diligence in selecting the program, as the requirements and guidelines ( as far as I am aware ) are available to them and it was clear that I would have never qualified for that program. 

The closing date is XX/XX/XXXX for the house, and at this time I can not go with another lender as most can not close in such a short period of time - I have attempted to contact several since learning of the massive rate increase. The sellers are unwilling to give an extension to the closing date. So I am forced to accept the 1.25 % increase in interest rate, or risk losing my earnest money and the house. 

I have attempted to understand why I was not told about this or why the rate I locked is not being honored, but have not received a clear response. I asked the loan originator if there was someone I could talk to about this, but was told 'you can talk to my manager if you want but there's nothing I can do ', and never received manager contact details. I have tried to escalate this issue with the company through external means, but the phone number on the rate lock document returns 'the number you have dialed is not in service ', and the customer service lines on their website reach to some 'debt collector ' every time I have tried. I talked to the loan originator many times, and was told the very best she could do is give me .25 % points credit - meaning 5.625 % with 0.283 % points ... which is not a meaningful difference in the least. 

I feel incredibly deceived by this company. I can not find anything in the rate lock document that would suggest dependency on a particular program. Regardless, if I had known about this beforehand, I would have never agreed to this, and would have either locked for a slightly higher rate but guaranteed approval, or gone with an entirely different lender ( as at that point I had 31 days to close- well within reason for many lenders ). Instead, I am being coerced into accepting an enormous increase in interest rate, through no fault of my own.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation