Consumer complaint received 2024-10-03
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — Delays with the closing process
Company: JPMORGAN CHASE & CO. (PA)

Timeline and Summary of Mortgage Process with Chase : XX/XX/year> I began the mortgage process with Chase and obtained pre-approval. I discussed with the loan advisor over the phone that I was changing jobs, which was the reason for moving to the area where I was buying the house. i have an excellent finance history and excellent credit score of XXXX. 

The loan application was filled out over the phone by the loan advisor. I provided all requested documents and information, including clarification about the commute distance of over 40 miles from my current workplace to the new house. I explained that I had already signed a contract for a new job in the area where I was purchasing the house. I submitted my new employment contract and all related documents. After the underwriter 's review, I was granted conditional loan approval. 

XX/XX/year> My offer to buy the house was accepted by the seller at a price of {$460000.00}. With a 20 % down payment, the loan amount was set at {$380000.00}. 

XX/XX/year> I locked in a 6 % interest rate. The Loan Closing Disclosure ( CD ) was provided, with a scheduled closing date of XX/XX/XXXX. The lender waived the need for a home appraisal. 

XX/XX/year> Just two days before closing, my loan advisor called to inform me that the underwriter could not approve the loan due to the way my new employment contract was written. ( To note : I had submitted this contract a month prior during my application process. XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX where my salary fluctuates depending on shift work but is guaranteed at a minimum for a XXXX XXXX XXXX XXXX  My employer had even provided a letter confirming my minimum guaranteed earnings, but this was still not accepted by the lender. 

The lender then informed me that they could close the loan on XX/XX/XXXX under different terms, but with a significantly higher interest rate of 7.875 %. The loan amount and all other details, including my employment situation, income, and application information, had not changed since XXXX. Despite this, they suddenly offered the loan at a much higher rate, and I had no choice but to accept it. My move was already planned, childcare arrangements were made, and both my wife and I were set to start work at our new jobs. 

Feeling misled, I appealed for the {$25000.00} Home Closing Guarantee that Chase had advertised, as the delays were entirely beyond my control. I had provided all necessary information in a timely manner. 

After more than a month of review, Chase 's escalation department denied my claim for the Home Closing Guarantee. They falsely claimed that I had not disclosed my new job, despite having my employment contract on file throughout the entire process. The initial underwriter had even reviewed it and granted conditional approval. I was also asked to clarify why the commute from my current job to the new home was over 40 miles, to which I responded that I was moving because I had already signed a contract for a new job in the area. Despite these facts, Chase refused to provide written communication of their decision or explanation. They also declined to provide an email address for the case manager handling my claim for the closing delay and guarantee, and only communicated this decision via a phone call. 

( to note even my loan no is same in the new loan with new terms comapred to loan that was approved before, they just hiked the interest rate at last moment and changed the terms of loan. i have attached the loan application and 2 different CDs i was given with different rate and terms )