Consumer complaint received 2016-03-13
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: CA
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Settlement process and costs

Complaint:
INTRODUCTION On XXXX 2014 BORROWER applied and received a new real estate loan in the amount of {$300000.00}, from BANK OF AMERICA ( LENDER ). BORROWER was over charged by the LENDER in the amount of {$1100.00} for discount points for the specific interest rate chosen. The LENDER misrepresented the Good Faith Estimate ( GFE ) on the final XXXX statement. 

GOOD FAITH ESTIMATE ( GFE ) On or about XXXX XXXX, 2014, BORROWER received from the LENDER an Interest Rate Conditions. See Exhibit XXXX attached hereto. The interest rate and the discount points were locked in at an interest rate of 4.625 % and a credit XXXX % or $ XXXX. 

On or about XXXX XXXX, 2014, BORROWER received from the LENDER an Estimated Settlement Charge Summary. See Exhibit XXXX attached hereto. The Estimated Settlement Charge Summary also confirms the credit points in the amount of $ XXXX. 

SETTLEMENT STATEMENT ( XXXX ) BORROWER received a misstated XXXX settlement statement. See Exhibit XXXX attached hereto. 

LENDER IS ACCOUNTABLE FOR THEIR QUOTES LENDER is accountable for their quotes in a real estate transaction. The XXXX is a standardized document that list every expense involved in the real estate transaction and is presented to the borrower during the closing process. BORROWER was quoted in the GFE $ XXXX XXXX XXXX % of {$300000.00} ) discount points. 

LENDER wrongfully stated the amount in the settlement statement on page XXXX, comparison of GFE and XXXX. The XXXX line number # XXXX should be - {$3600.00} and not - {$2500.00}. See Exhibit XXXX attached hereto. 

0 % TOLERANCE If at the closing, any item in the 0 % tolerance category is higher on the corresponding section of the XXXX compared to the original GFE, the LENDER is responsible to cover the difference. 
Charges that can not increase are : Origination charge # XXXX Credit or charge ( points ) for the specific interest rate chosen # XXXX Adjusted origination charges # XXXX Transfer taxes # XXXX It is clear that the LENDER over charged BORROWER by {$1100.00} by misstating the GFE and the XXXX with - {$2500.00} when the GFE clearing shows the amount should be - {$3600.00}. 

CONCLUSION If at closing, any item in 0 % tolerance category is higher on the corresponding section of the XXXX compared to the original GFE, the LENDER is responsible to cover the difference. In this case the difference from - {$3600.00} and - {$2500.00} is {$1100.00}. 

In the event a LENDER misses XXXX of the tolerances in the GFE, the LENDER is responsible to pay the difference. If the tolerances were missed, the settlement can proceed, and the LENDER has 30 days to compensate the BORROWER for the missed tolerance. The LENDER has had over 30 days to compensate the BORROWER in the amount of {$1100.00} and continues to refuse to pay the difference. 

For at least these foregoing reasons, LENDER should pay BORROWER {$1100.00}.

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