Consumer complaint received 2023-07-22
Product: Mortgage — FHA mortgage
Issue: Closing on a mortgage — 
Company: MORTGAGE 1 INCORPORATION (MI)

On XX/XX/XXXX I started my house buying process with XXXX XXXX at XXXX my original interest rate was 3.99 %. and locked in until XX/XX/XXXX. 
On XX/XX/XXXX my interest rate changed to 4.625. % and locked in until XX/XX/XXXX. 
On XX/XX/XXXX it remained at 4.625 % and locked until XX/XX/XXXX. 
On XX/XX/XXXX it remained at 4.525 % On XX/XX/XXXX it changed to 5.25 % and locked until XXXX. 
On XX/XX/XXXX it remained 5.25 % My loan amount was for XXXX. 
I brought this issue to the mortgage lender attention he stated on XX/XX/XXXX that he had already requested XXXX extension and they cost money. He also stated due to difficulty with the appraisal that he forgot to lock in my rate and he was unable to do anything. I asked him to educate about me this process. He stated typically it takes XXXX days to close and since mines took over 30 days. He stated this led to the increase. The process was extended due to an low appraisal value and the appraisal company XXXX XXXX failure to respond in a timely manner. A request for review was made XX/XX/XXXX and an updated report was not provided until XX/XX/XXXX. 

This the email I sent to upper management XXXX XXXX of the mortgage company on XX/XX/XXXX regarding the interest rack increase and the difficulty with the appraisal company. 

XXXX XXXX, XXXX at XXXX PM XXXX I am currently working with XXXX XXXX to close on my first home tomorrow. However, initially I was informed that my rate would be locked at 3.99 % ( XXXX and was due to expire on XXXX days ) during this period the appraisal was received on XX/XX/XXXX at {$160000.00}. A request for an accurate comparable to be made was requested the next day and the request was not updated or acknowledged until XXXX. Once corrected the value was assessed at {$180000.00}. I was informed by XXXX that he requested an extension however I see on XX/XX/XXXX the rate was increased to 4.6 % and expired on XX/XX/XXXX. However, on XX/XX/XXXX an extension was requested for the rate of 4.6 % which expired XX/XX/XXXX. The repairs requested from the appraisal were not completed until XX/XX/XXXX. Then on XX/XX/XXXX an extension was requested for 4.6 % which expired XX/XX/XXXX. At this time a reinspection was requested for the completed repairs. On XX/XX/XXXX another rate increased occured which is 5.35 % and brought my monthly payment to {$1400.00}. Initially my estimated monthly payment was roughly {$1300.00} with a 4.6 %. It appears that the lock initially was for only 14 days and it was not extended although the appraisal was not ordered until XX/XX/XXXX and the report was not received until XX/XX/XXXX. The delay from appraisal occured and the correct report was not received until XXXX which at this time no rate was locked in due date lock expiring. A new rate was not locked in until XX/XX/XXXX. Initially mortgage XXXX was handling my paperwork well, but somehow between the miscommunication associated with the appraisal agency ( that is unprofessional and unethical ) and now this rate gouge has occurred has made this a stressful experience. 

I remained in contact with XXXX via text and phone from XXXX until I received the updated appraisal. I also requested a new appraisal free of cost because the XXXX appeared to be biased. I was informed that was not possible. 

No resolution was ever reached. 
The loan was sold to XXXX