Consumer complaint received 2024-07-30
Product: Mortgage — VA mortgage
Issue: Closing on a mortgage — Fees or costs after closing
Company: CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP (TX)

We are currently trying to close a one time close construction loan to a permanent mortgage. We began the construction loan in XX/XX/XXXX and the builder turned the house over to us on XX/XX/XXXX. The financial institution, Cardinal Financial, had us pay for a XXXX  day rate lock which expired on XX/XX/XXXX. Since XX/XX/XXXX we've been forced to pay rate lock extensions at a cost of {$200.00} a day, which is currently still going. Paying these rate locks have come out of pocket from our savings account and are not included in the closing disclosure as per the XXXX XXXX XXXXXXXX because we did a one time close. We did not request rate lock extensions but have been told by the bank that we have to even though their policy is the borrower needs to request rate lock extensions. On XXXX XXXX we received a copy of the XXXX XXXX handbook XXXX and in Chapter XXXX it discusses what can and can not be charged to the veteran. The handbook states that lenders can not charge veterans more than the 1 % flat rate for rate lock-in charges and an additiona 2 % if the lender supervises more than 50 % of the construction progress, for a total of 3 %. With that information, we reached out to the VA loan production office to clarify the 1 % and the additional 2 %, at which time the VA instructed us that the lender can not charge us more than 3 % of the total loan amount for rate lock in charges, our 3 % is {$29000.00}. The initial rate lock in for XXXX  days was charged {$31000.00} at the initial closing which automatically exceeds the 3 % and since XX/XX/XXXX we've had to pay the {$200.00} per day. The fees we've paid since XX/XX/XXXX had a total of XXXX invoices paid for a total of {$13000.00} with another XXXX invoices still pending. With our conversation with the XXXX  it was stated that those charges since XX/XX/XXXX of {$200.00} a day are not visible by the VA and I feel that is done on purpose with the intent to deceive so that the VA will not have oversight on those payments because XXXX XXXX knows they are taking advantage of veterans by hiding fees. We've discussed this with the XXXX XXXX XXXX and in multiple conversations he states that there is nothing wrong with the way they are conducting this and that he believes we were not truthful when telling the VA what was happening. We forwarded every email from the VP to the XXXX XXXXXXXX production office and we verbally read them to the XXXX  XXXX while we were on the phone. Cardinal Financial has stated that we have to keep these rate locks because if we dont we will have to reapply and possibly not get approved which would mean we lose the house XXXX which will leave us XXXX at that point. When we asked for help with some of these charges, we agreed to pay them but we asked if Cardinal Financial would waive some since the {$200.00} a day seems excessive, we were told by the XXXX XXXX XXXX that the " lending house has concern that we are asking for help and that they believe because we are asking for a waiver on some of these fees the lending house sees it as a concern that we may not be able to afford our home. '' We've already been vetted and approved for the loan amount and we have the VA backing on the loan. We've paid closing costs and we've paid the initial 360 day rate lock and subsequent charges at the daily rate of {$200.00}. When we asked what would've happened if we didnt have the money in savings to cover these unforeseen charges, we were told that unfortunately we could have to foreclose and theyve seen that happen. That approach from XXXX XXXX comes across as a threat if we dont pay to play. In our talks with the XXXX  they said once it converts to a permanent mortgage we can ask for a full file audit and any overages that we shouldnt have had to pay, the XXXX  will audit and inform XXXX of any wrongdoing. We, as the borrowers, havent had a say in regard to the construction being overdue and we havent had a say in regard to the bank forcing rate lock charges on us but while the bank and the builder argue, we are the ones being held liable for the loan still not converting yet.