Consumer complaint received 2020-06-12
Company: NOVA Financial Holding Company, LLC
State: CO
Product: Mortgage
Sub-product: FHA mortgage
Issue: Closing on a mortgage

Complaint:
When it was time to lock my rate with XXXX XXXX in Colorado, I was told we were going to lock at 3.5 % with 5.0 down payment assistance at XXXX am on XXXX/XXXX/2020. The next morning on XX/XX/XXXX2020 I received the following email from Nova Home Loans : ++++++++++ XXXX, I want to give you a heads-up about an potential problem that popped up this morning I checked the XXXX  rates this morning in preparation for locking/reserving the DPA rate & funds, and I was shocked to see that the posted rate for the FHA 5 % DPA option had increased overnight from 4.625 % to 5.125 % ( see below ). This higher rate moves our DTI ratio above 50 %, which is the max permitted for the program. 

I have an email and a call into the XXXX program administrator to find out if this is correct, and if so, to see if they will honor yesterdays rate of 4.625 % especially given that the new higher rate means we no longer qualify. 

This makes no sense, as mortgage bond pricing has actually improved over the past 2 days. 

As a worst-case scenario, we would need to look at changing to the 4 % DPA option at 4.500 % interest rate. If we are forced to change to the 4 % assistance option, we may want to revisit XXXX to see if their rate would be lower, although the XXXX  silent 2nd mtg is not forgivable like it is with XXXX. If we changed to XXXX, their homebuyer ed class is different, although now they are offering the online class for free given the situation with coronavirus. 

I will be in touch as soon as I hear back from XXXX  +++++++++++ For some reason the rate lock was not requested on XX/XX/XXXX like I was told, causing me to lose the 5 % DPA assistance at 3.5 % rate. The next day the rate was locked at 4 % DPA assistance with a 4.5 % rate. Causing me to have a much higher payment and put quite a bit more cash down. 

I am happy with the service I received, my agent was very nice and professional but I have a bad feeling since this happened, that this was on purpose. A couple weeks after closing at this higher rate, XXXX XXXX   purchased my loan before I could even make my first payment. 

I truly feel like I was racially discriminated against. I got the highest possible rate of the year, when the day before and the day 's after were much lower, and even lower at this time. 

I got a XXXX rate either because Nova either did not submit the paper work on XX/XX/XXXX like they said, or XXXX XXXX held off approving, knowing the next day it would go up. I see a lot of things about XXXX Americans getting much higher rates than others, and this seems like a perfect example. Someone who qualifies, is told they will get a certain rate, only to have the rug unfairly pulled form beneath them. I am not the type to complain but I just made a 30 year commitment, while I feel I was treated unfairly to the rest of the population who is getting historically low rates. 

I am not sure where my deal went wrong, but I would like to know why this happened to me. Was it intentional? Was it because Nova did not submit on XX/XX/XXXX like they said? Did XXXX hold my offer until the next day to get a higher rate and them putting less cash down? 
It feels wonderful to get my family in our first home after working so hard, but it feels bad knowing you got a bad deal.

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 explanation