Consumer complaint received 2021-09-13
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — 
Company: Better Mortgage, Inc. (GA)

In XX/XX/XXXX, we refinanced our mortgage with Better ( closing date XX/XX/XXXX ). 

Later that year, we refinanced again with Better, closing on refi # 2 on XX/XX/XXXX. We used Better 's title company, XXXX XXXX XXXX ( XXXX  ), to handle the closing. As part of the closing, we paid {$850.00} in intangible taxes, which were listed as " transfer taxes '' on our closing disclosure. 

On XX/XX/XXXX, we closed on a third refinance with Better. We used a local law firm, XXXX XXXX XXXX, to handle the closing. As part of the closing, we paid only {$1.00} in intangibles taxes, again listed as " transfer taxes '' on our closing disclosure. We asked our loan officer why the intangibles taxes for refi # 3 were so much lower than those for refi # 2, and we were told that because we were refinancing with the same lender, we got " a break on the intangibles tax. '' In refi # 2, we refinanced with the same lender ( Better ), so we should not have paid the {$850.00} in intangibles tax. I asked Better multiple times to investigate this matter, however, they have failed to provide a reasonable explanation for why we did not get the intangibles tax exemption for refi # 2, but we did get it for refi # 3. I believe XXXX made an error in calculating our closing costs and overcharged us for intangibles tax. I believe we are owed a refund of almost all of the {$850.00} in intangibles tax we paid as part of refi # 2. 

I did some research and found a link to the Georgia law that specifies the intangibles tax exemption for refinancing with the same lender. LINK : https XXXX XXXX  Rules and Regulations of the State of Georgia, Department of Revenue 560-11-8-.05 Refinancing. 

( 1 ) Intangible recording tax is not required to be paid on that part of the face amount of a new instrument securing a long-term note secured by real estate which represents a refinancing by the original lender and original borrower of unpaid principal of an existing instrument securing a long-term note secured by real estate still owned by the original lender, if the intangible recording tax was paid on the original instrument or the original holder of the instrument was exempt. 
( a ) The new instrument must contain a statement of what part of the face amount represents a refinancing of unpaid principal. This information must be disclosed on the face of the instrument or in the alternative may be submitted in the form of an affidavit indicating which part of the face amount represents a refinancing of unpaid principal. ( 2 ) Where two or more instruments securing long-term notes, secured by separate deeds to secure debt and held by the original borrower and the original lender, are consolidated, with no new money advanced, into a single instrument securing a long-term note with a single deed to secure debt, intangible recording tax is due, up to the statutory maximum, on that portion of the indebtedness secured by the new instrument, if any, that does not represent unpaid principal on the consolidated notes. ( 3 ) Where instruments securing long-term and short-term notes, secured by separate deeds to secure debt and held by the original borrower and the original lender, are consolidated, with no new money advanced, into a single instrument securing a long-term note with a single deed to secure debt, intangible recording tax is due, up to the statutory maximum, on that portion of the indebtedness secured by the new instrument, if any, that does not represent unpaid principal on the long-term note or notes. 
Authority O.C.G.A. Secs. 48-2-20, 48-6-61 -- 48-6-69. History. Original Rule entitled " Refinancing '' adopted. XXXX XXXX. XXXX, XXXX ; eff. XXXX. XXXX, XXXX.