Consumer complaint received 2020-04-09
Company: LoanUnited.com, LLC
State: OH
Product: Mortgage
Sub-product: VA mortgage
Issue: Closing on a mortgage

Complaint:
I am rescinding my loan with Loan United ( NMLS # XXXX ) as I have been unhappy with the lack of transparency and trust through the originating process. I received the run-around through the entire process from the start and understand why people claim non-banks to be " shady '' after going through this process. My costs have changed multiple times without any warnings and have received substandard responses to these issues. I am a veteran and was completing the XXXX  XXXX XXXX which is very limited on tasks to complete and no appraisal required. I can't imagine having to go through a full document home purchase or refinance with this company. I have attached all of the LE, CD, and email exchanges that have been referenced in my email below. 

1. I initially spoke XX/XX/XXXX at XXXX  about refinancing my loan with XXXX XXXX. I stressed not wanting to increase my loan amount since I refinanced last year and did not like the increase I underwent. I also stated I wanted to lock my loan at that time at the agreed upon rate of 2.75 % with 0.16 points ( {$280.00} ) and loan amount XXXX. In this call, I specifically mentioned locking my rate and being unsure when I should check back for possibility of the market lowering even more. XXXX mentioned we can lock now and then and if another company offers a lower rate later, which may even be a credit to my closing costs, I would just start the application with the other mortgage company and relock. Essentially, only pushing back my closing date. Finally, XXXX had said his company is behind on processing loan applications and my application may take a few days to get to me. 

2. Since I was traveling for work and then visiting family out of town, I did not mind my application not coming to me for a few days. I was very informed on the refinance boom and knew mortgage companies were being overwhelmed. I left a voicemail that Friday, XX/XX/XXXX since I did not see anything in my email except XXXX initial email following our first conversation on Wednesday ( attached ). Notice XXXX email mentions attempting to lock my loan before application is sent out. 

3. Again, I checked email Sunday since I had not gotten a call back from my voicemail and decided to send an email inquiring. After sending my email, I thought to check my spam. Unfortunately, my application was sent to my spam box with the kicker that it was sent only a few hours after we spoke on Wednesday. Even more disappointingly, my rate was designated as not locked. I then had to reach out to you on Monday afternoon because I had not heard back. After getting connected with XXXX and addressing my concern that my rate was not locked, XXXX explanation was that it was " company policy '' that he could not lock my rate until I signed my application. This was complete news to me and very frustrating since I covered all my bases on our first call with my concerns. There was no mention that my rate might not be locked or that I had to do anything in order to lock my rate. This call danced around the matter and was very salesy. A good part of this call was spent trying to convince me that a disservice was acceptable because it happens to a lot of people and some people can't even get an interest rate as low as mine and that I'm skipping 2 payments so I can just put it back into my loan ( this is not a benefit as my mortgage repayment is just being postponed ). He gave me the rate for that day ( 2.75 % 0.553 points [ {$1000.00} ] and a loan amount XXXX ) and I gave up on trying to explain what happened wasn't right. My loan was locked and I signed the application. 

4. Clearly, I am upset at this point and call into the main line to reach XXXX XXXX 's manager in order to resolve my issue. I was connected to XXXX where I got cut off multiple times with him trying to tell me the market is crazy and giving me explanations for things I did not ask about. I think he thought I was calling to acquire a lower rate off the bat and not that something bad had happened. It took me a good chunk of time to get across my point that I was upset over the fact that I stated I wanted to lock my rate on XX/XX/XXXX and the conversation I had did not mention there was any possibility of my rate not being locked or that it was " company policy '' that I needed to sign my documents first. I stressed that I especially did not know this because I was told my application would take a few days to get to me. Again, I received a very salesy response that danced around the topic. XXXX mentioned a lot that XXXX is a really good guy and is always caring for his customers etc. XXXX echoed that it was a really good rate and he added that he thinks the market is going to continue to decrease so it might even work out to not lock my rate. I had already made my decision that I wanted to lock however. I asked XXXX about compensation to amend this error, but he said there wasn't a possible way to do that. He had said that VA loans are strict on how and how much mortgage companies credit loans and restrict this. I am aware of sellers and lender credit cant go beyond an allowable amount, but I have not received any credits in this circumstance. I continued to research this and I have not found anything that would restrict Loan United from crediting 0.393 points ( {$710.00} ). XXXX stated the only thing he could do is coach XXXX to disclose he could not lead customers into believing their loans are locked until they sign their applications. Finally, I folded because it sounded like nothing was going to be done about this. 

5. I am surprised again during this process because my prepaid and escrow was estimated incorrectly and a {$900.00} VA funding fee which I'm exempt from is present. I only have my initial CD on XX/XX/XXXX ( notice the closing date is scheduled for XXXX which is important later ) to evidence this change. I inquired about these and mentioned once again that I did not want my loan amount increased in my email. The next communication was from XXXX in a voicemail where there was no reference to my concerns from my email. I sent another email ( I was working and couldn't spend time on the phone ) asking for a response to my email. XXXX answered back that the VA funding fee would be omitted and that title hadn't balanced yet so after everything was " balanced out '', I wouldn't owe anything at closing. There is no mention that this would be at the expense of my loan increasing and lead me to believe the fees were still incorrect and I had nothing to worry about. 

6. Very frustrated with this process, I just wanted to close at this point and hoped that no fees would adjust again. I received a CD to view on Sunday for my closing. Unfortunately, my loan amount increased XXXX {$180000.00} ) again in order to bring nothing out of pocket at closing and to cover everything ( not what I was led on to believe from email from previous point ). Another kicker : the points have increased again ( 0.628 points [ {$1100.00} ] ) Date issued is XXXX with closing date XXXX and disbursement of XX/XX/XXXX with me receiving {$0.00} at closing. I had asked my processor, XXXX, beforehand if the title company had balanced because I was apprehensive of the numbers with XXXX CC 'd on my email. 

7. I receive a call from XXXX on Monday, XX/XX/XXXX around XXXX but am working. I called him back at XXXX and there's talk of closing that night around XXXX. Within our conversation that evening XXXX lets me know that the title company does not have anyone to come out and sign that night and are pushing closing to Wednesday at their expense since they do not have someone available. However, I receive a call from an agent at XXXX with someone assigned to my loan to close that night. I let them know what XXXX had just told me. This works out better for me since everything seemed to be thrown together last minute and I was amidst reporting for work which would need to be put on pause and then continued into late hours of the night if I were to start my refinance closing at XXXX. She must have called the title company which reached XXXX to hear what seemed to be news to them. I get a phone call from XXXX at XXXX that the title company is capable of closing tonight and that I SHOULD close tonight instead of Wednesday and that I'd receive another closing disclosure ( I specifically asked if this is the same as the one I JUST received yesterday and he said yes ). The call also seemed to point that I gave title company incorrect information which I am confused over because I only relayed exactly what he had told me. I guess I'm closing in an hour at this point. 

8. I happened to check my email and was surprised to see I got an email ( XXXX ) from XXXX since I just spoke to him on the phone 2 minutes prior to that being sent. It's a " Final Closing Disclosure '' with numbers changed, again. This time the only changes made are the origination points and my loan amount in order to cover the adjustment. I call XXXX as soon as I read this ( XXXX ) and left him a very concerned voicemail and follow up with an email at XXXX since XXXX does not call me back. The Final Closing Disclosure ( also the disclosure signed at closing table ) : date issued is XXXX with closing date XXXX and disbursement date of XX/XX/XXXX ; 0.703 points [ {$1200.00} ] and a loan amount of {$180000.00} ). My closing date has been pushed up from the XXXX date on the CD on the previous date and disbursement date was the same. My email stated the only change I saw was my loan amount increase and points increase. 

9. XXXX never responds on Monday and I receive an email ( no call back ) on Tuesday stating " They charged you a lock extension for a couple days. I asked them to pay it and they wouldn't. '' with a screen shot of emails exchanged at XXXX between XXXX and a XXXX XXXX of XXXX XXXX XXXX XXXX- meaning this was a conversation held hours before I was intended to close on Monday. I am not sure what the email meant because all it said was that they couldn't give anymore and they maxed out, but nothing had ever been " given '' from the start of the process. The CD from Sunday had a later close date and same disbursement date without the additional fee. 

2.75 % with 0.16 points ( {$280.00} ) and loan amount XXXX 2.75 % 0.553 points ( {$1000.00} ) and a loan amount XXXX 2.75 % 0.628 points ( {$1100.00} ) and a loan amount XXXX 2.75 % 0.703 points ( {$1200.00} ) and a loan amount of {$180000.00}

Company response to consumer: Closed with explanation