Consumer complaint received 2024-09-17
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — Trying to communicate with the company to fix an issue with the loan closing
Company: GUARANTEED RATE INC. (NY)

Dear CFPB : I am writing to file a formal complaint against Guaranteed Rate Affinity regarding their handling of my mortgage application process for the purchase of a condominium at XXXX XXXX XXXX, XXXX, NY. The issues I have experienced relate to predatory lending practices, failure to disclose substantial fees, and the refusal to provide a decline letter, which has caused me significant financial loss. 

I applied for a loan with Guaranteed Rate Affinity after being declined by XXXX  XXXX XXXX and XXXX. I was approved for a mortgage with an initial loan estimate of approximately {$88000.00}. However, just two days before closing, I was presented with a final loan estimate that was more than {$10000.00} higher than the initial estimate. This increase was unexpected, and I did not have sufficient funds to cover the additional amount. Upon consulting with my attorney, we realized that additional fees, including legal fees, had not been disclosed, further exacerbating the issue. 

I informed Guaranteed Rate Affinity of my financial situation and my inability to proceed. However, instead of declining my loan due to insufficient funds ( which would have allowed me to terminate my contract with the condo seller without penalty ), they pressured me to voluntarily withdraw my loan application. I believe this practice is unfair and caused me to forfeit 50 % of my down payment, as I was unable to secure the decline letter, which was a stipulation in the contract with the seller. 

I never contacted Guaranteed Rate Affinity to voluntarily withdraw from the loan application, and I would like to know what reasoning they had in asking me to withdraw, rather than reaching out to my lawyer, who should have handled such a critical decision. I feel it is predatory to pressure a borrower into withdrawing from a loan application without allowing proper time for consultation, and I believe Guaranteed Rate Affinity was well aware of the potential harm this could cause. 

Additionally, I find it concerning that, despite the closing being set for XX/XX/XXXX, I received a call on XX/XX/XXXX from XXXX XXXX, asking if I would like to withdraw my loan application. This call was made while my attorney was on vacation, and no efforts were made to explore all possible options. I question the timing and motives behind this call and the pressure placed on me to withdraw without representation. 

Moreover, I believe Guaranteed Rate Affinity engaged in predatory lending practices by suggesting that I find additional funds or sell assets to complete the purchase. I was led into a financially precarious situation without being fully informed of all the fees and potential liabilities, which I believe violates consumer protection laws. 

I am requesting the following actions : An investigation into the lending practices of Guaranteed Rate Affinity related to my mortgage application. 
A determination of whether Guaranteed Rate Affinitys failure to provide a decline letter and their pressure for me to withdraw my application constitutes a violation of federal lending laws. 
Compensation for the financial losses I have incurred due to these actions, including the loss of 50 % of my down payment and any associated legal fees. 

I have attached documentation related to my mortgage application, loan estimates, and communications with Guaranteed Rate Affinity. Please feel free to contact me for any additional information or clarification. 

Thank you for your attention to this matter. I look forward to your prompt investigation and resolution of my complaint. 

Sincerely, XXXX XXXX