Consumer complaint received 2015-12-23
Company: PHH Mortgage Services Corporation
State: PA
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Settlement process and costs

Complaint:
Closing was set for XXXX/XXXX/15 at XXXX. 

Coldwell Banker Home Loans ( " CB '' ) provided a Loan Estimate ( " LE '' ) on XXXX/XXXX/15 after a new loan application was completed under the name of XXXX. 

The previous application dated XX/XX/XXXX under the names XXXX and XXXX was denied. We received previous LEs under the joint application only ( with terms to expire XXXX/XXXX/15 at XXXX. ). 

The loan number and interest rate remained unchanged but a new credit check on XX/XX/XXXX was performed. On the same day, CB provided a LE to XXXX. 

All documents for this loan were viewed online with a time stamp stating when they were entered into the system and when viewed. 

I received XXXX and Closing Disclosure ( " CD '' ) on XXXX. 

Closing costs were {$15000.00} on LE and {$10000.00} on CD. Cash needed for closing was {$4500.00} LE ; {$23000.00} on CD. On LE, Transfer taxes were {$2900.00} ; CD {$0.00}. 

I emailed the loan originator, XXXX XXXX, to confirm {$23000.00} in a certified check on XX/XX/XXXX. 

On XXXX at XXXX, our realtor sent us a DRAFT WITHOUT LENDER FEES Settlement statement from XXXX stating closing costs of {$21000.00}. I did not know what this form was and asked the realtor if this changed what we owed at closing. We received no response. 

On XXXX/XXXX/15, I received ( but did not listen to it ) a voice message a XXXX to call XXXX. The message said " I wanted to give you a call. Apparently there is an error on the closing disclosure that was provided to you guys by CB. It is one that is going to factor into your bottom line. It appears that you are going to need a good bit more money than what was disclosed on that statement as it appears that the transfer tax was left off. If you are available '' within 15 minutes we can today today. 

I then received a call from CB 's Loan Processor, XXXX XXXX, at XXXX on XX/XX/XXXX stating that we were all set for closing on the next morning at XXXX. I then listened to my XXXX voicemail from XXXX . 

I called XXXX XXXX, she stated there was an updated CD that I was not provided. I asked for it again via email at XXXX on XX/XX/XXXX. It was never posted on the mortgage website. I was given updated CD at closing at XXXX. 

I was uncomfortable going forward and stated these concerns. I proved CB the copies of the LE and CD and provided her information from the CFPB website as well as explained to her the applicable sections that her company was violating 1026.19 ( e ) and 1026.37. I reviewed with her what the CFPB states can change from the LE and what is actually paid at closing. I reviewed with her that there is zero tolerance to change transfer tax, 1026.19 ( e ) ( 3 ) ( ii ) and Comments 19 ( e ) ( 3 ) ( i ) -1 and -4. 

XXXX XXXX gave this to her supervisor, XXXX XXXX ( phone number ( XXXX ) XXXX ). XXXX XXXX stated to us that is looked as if what they did was not right, but someone had to pay the additional transfer taxes today at closing. He stated if something was not right that he would personally resolve it within the 60-day time required. He had already spoken with the Vice President of the Closing Department- XXXX XXXX and they were discussing a resolution. He stated we proceed and he would follow-up the following week. 

XXXX XXXX never contacted us again and disregarded our voicemails. I contacted XXXX XXXX and learned she no longer worked at CB. 

On XX/XX/XXXX, XXXX XXXX from the " Office of the President '' of CB called to find out what happened. She stated that she would call us back on XX/XX/XXXX or XX/XX/XXXX with a resolution ; she did not. On XX/XX/XXXX, she said CB would give us {$250.00} CB violated the Dodd-Frank Act since they did not clearly disclose fees in an upfront, timely manner- always outside of the waiting period requirements. The Closing Company called us saying owed {$4800.00} more in costs due to change in transfer taxes because a CB employee omitted them.

Company response to consumer: Closed with explanation