Consumer complaint received 2016-03-24
Product: Mortgage — Conventional adjustable mortgage (ARM)
Issue: Application, originator, mortgage broker — 
Company: JPMORGAN CHASE & CO. (CA)

1. Generally speaking, an oral contract is indeed legally enforceable in California. Chase bank ( XXXX : XXXX ) Mortgage banker XXXX XXXX ( NMLS ID : XXXX ) quoted us a rate of 3.375 % for a XXXX ARM, no-point, no-fee program if we agreed to do a {$410000.00} cash-out mortgage refinancing on our rental property on XXXX/XXXX/XXXX. She emphasized that the rate & price could only be promised until Monday XXXX/XXXX/XXXX. We followed her instruction to submit our loan application package to Chase on XXXX/XXXX/XXXX. So, a mutual agreement about the rate and terms on the mortgage application should have been established on XXXX/XXXX/XXXX. 

2. After receiving loan disclosures dated XXXX/XXXX/XXXX from Chase, we went in XXXX 's office to sign all documentation on XXXX/XXXX/XXXX. We did clearly question why the float rate option on Lock-in Agreement had been checked if the rate lock had previously been done. XXXX simply told us to ignore it. 

3. We, as Borrowers, had absolutely no idea why the rate lock was performed on XXXX/XXXX/XXXX. On the other hand, our understandings were that the rate had been locked on XXXX/XXXX/XXXX and the loan documentations would be ready for signing by end of last XXXX. ( The latter is what we had been told several times by XXXX while we checking loan status with her during XXXX XXXX. ) 4. We submitted the requested documentation from Mortgage Commitment Letter ( dated XXXX/XXXX/XXXX XXXX to XXXX XXXX on XXXX/XXXX/XXXX. We, as Borrowers, have submitted the required documentation to Chase in time and never delayed anything along the loan process. We have kept all the email communications between XXXX 's assistant, XXXX, and us to prove this point. 

5. XXXX locked the rate on XXXX/XXXX/XXXX and found out a fee charge of 2.5 %. According to XXXX, she reported to her manager XXXX ( XXXX ID : XXXX ) immediately and requested to remove the fee charge. But nothing had been done by XXXX at all ; thus the loan was unable to get funded by rate lock expiration date on XXXX/XXXX/XXXX, which further caused an extra 0.5 % fee charge to this loan. 

6. Even until XXXX/XXXX/XXXX, XXXX XXXX did not deny about the original agreement on the loan rate & price between us. Instead, she told us that she had reported all the facts to Chase. After a direct phone conversation in XXXX 's office with her Lending Manager XXXX yesterday, we finally realized that XXXX is the one who refused to honor the original rate & price. We asked XXXX for a copy of her report to Chase, she said the report was done through Chase internal email system and thus could not be released. 

In conclusion, Chase mortgage banker XXXX XXXX failed in locking the rate & price on our mortgage loan application as she promised to perform on XXXX/XXXX/XXXX. During the loan process, we, as Borrowers, have fully trusted and followed her instructions even when she told us to ignore some obvious mistakes shown on the loan documents including disclosures. We had such strong trust in her because we had full trust in Chase Bank, a reputable giant among American Banks. We also believed in verbal agreement are enforceable in mortgage industry due to our previous great experiences with other mortgage loan brokers. But this mortgage loan application with Chase has totally destroyed and against our trust and belief ... 

We, as a regular loan Borrowers, understand that our chance to fight against the giant Chase Bank on litigation issues is extremely bleak. But we still have to claim that Chase Bank, as employer for XXXX XXXX, should take 100 % full responsibility in XXXX 's mistakes. Chase bank needs to be responsible for 3 % of fee charge to our loan and to fund the loan exactly following the rate & price as originally agreed upon between XXXX and us.