Consumer complaint received 2016-03-21
Company: CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP
State: CO
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Application, originator, mortgage broker

Complaint:
On XXXX XXXX, 2016 Cardinal Financial quoted me an interest rate of 3.25 % and APR 3.255 % for a 30 years fixed refinance conventional loan on a {$350000.00} loan amount. 
The quote had {$1400.00} in origination fee, {$500.00} in appraisal fees and {$1700.00} in lender credit. 
Loan officer was XXXX XXXX, he mentioned on the phone that this is a great deal for me as I was getting {$1700.00} in lender credit to offset the cost. He asked me how much my house was possibly worth. Obviously, I am not at appraiser. He just asked me to guess, so I just told him XXXX has it for XXXX and XXXX has it for XXXX. So he used XXXX for the home value. 
Before I was locked in by paying for the appraisal, XXXX never mentioned the fact that the rate I was given was for 59 % LTV. I understand that if LTV is above 80 % then borrower pay for PMI. It is unheard of that a lender charges an undisclosed amount of fees for every single percentage change to LTV even though it is way below 80 %. And the fact that the initial property value was simply a guess. 
Right after I filled out the application, things started to feel wrong because they started asking for {$550.00} for the appraisal fee, even though I was quoted only {$500.00} online. 
I lived through it because I thought I was getting a good rate. 
The biggest surprise came after the appraisal, the house appraised to {$570000.00}. Only {$7000.00} short from my initial guessed number I provided to XXXX XXXX. At this point, they sent me a letter saying since it came $ XXXX short of what I had guessed the value would be, I will now have to pay a new LTV fee of {$870.00}. 
I told XXXX that I felt being betrayed because I was told from the very beginning that nothing would change in the loan terms and no surprise fees. Before the appraisal on my introductory call to other loan officer XXXX XXXX, I had told her very clearly that I do not want to proceed with the loan if there will be surprises down the road, and she had assured me that there wo n't be any surprises and no new fees. 
XXXX kept making this silly argument that since I said the house was worth $ XXXX, and with the appraisal coming {$7000.00} short, the LTV changed from 60 % to 60.55 %. Thus I have to pay another {$870.00} in fees. 
Since when did the law change that lenders can hold XXXX to the homeowners head for the value they say their homes could potentially be worth? 
What 's the point of appraising the house if the homeowners are supposed to tell you exactly how much the home is worth? 
Where is the truth in lending? And why were these secret fees not disclosed initially before I paid for the appraisal? 
To make it worse, XXXX lectures me on how I should succumb to any surprise fees they add because the rate has gone much higher since I locked at XXXX. Is that a justification you give customers to pay hidden fees because the rates have increased now? 
Ultimately XXXX left me with two options, either succumb to the secret fees or cancel the application. In which case, I did not want to set the precedence and be a victim of predatory lending. So I asked him to cancel the application. 
I had dealt with so many lenders in the past and it was always a great experience dealing with them. My neighborhood has appraised so much since the housing bust, that my previous lender waived the appraisal altogether. Initially, I had mentioned XXXX also about possible appraisal waiver, and to lure me, he said it 's very possible to do so. But, right after I filled out the application, he out right denied the possibility of appraisal waiver. 
So, dealing with Cardinal was all about lies, deceit, and of course blackmail customers with higher fees later in the process under different pretexts. 
Please see all complaints consumers have in North Carolina XXXX, they are all similar in nature.

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